US Inflation: Real Drop or Manipulated Data?

Pars Today – The release of the latest U.S. inflation data has not only failed to ease concerns about rising prices and the cost-of-living pressures, but due to delays caused by the federal government shutdown, it has also raised serious questions about the reliability and accuracy of official figures.

According to a report released by the U.S. Department of Labor on Thursday, the Consumer Price Index (CPI) increased by 2.7 percent in November compared to the same month last year—a rate still above the Federal Reserve’s 2 percent target and one that continues to fuel public dissatisfaction over high living costs. Pars Today notes that the report was delayed because of the federal government shutdown, and experts say the absence of complete October data makes it difficult to accurately assess inflation trends or perform month-to-month comparisons.

The Associated Press reported that while the U.S. government indicated that inflation and consumer prices unexpectedly fell in November, the report’s delay due to the federal shutdown raises the possibility of data distortion. Kihei, a senior executive at multinational financial services and banking firm Goldman Sachs, warned that the November figures “are subject to statistical fluctuations.” He added that the missing October report prevents month-to-month comparisons and that the limited data collection during the shutdown could introduce bias into the figures.

Warning signs for the U.S. economy

Meanwhile, ABC News reported that despite the overall decline in inflation, the prices of some essential items continued to rise. Coffee prices in November jumped nearly 19 percent compared to last year, and beef prices rose around 16 percent. Some analysts argue that the new data reveal warning signs for the U.S. economy. The U.S. Bureau of Labor Statistics had previously indicated that the federal government released only part of October’s price data, and due to the lack of complete information during the shutdown, it was impossible to provide an overall price increase for that month. The release of the latest inflation data comes at a sensitive time for the U.S. economy, amid slowing job growth and ongoing inflationary pressures.

Rising energy and electricity costs in the U.S.

NBC News also reported that energy prices have increased 4.2 percent over the past 12 months, while electricity costs have risen 6.9 percent over the same period. NBC’s research shows that Americans continue to consider inflation and everyday living costs their top economic concern. In a recent survey, 44 percent of U.S. respondents identified “inflation and rising living costs” as their most important economic issue.