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Economist Warns Inflation Data Unreliable Amid Economic Fragility

10/25/2025

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Summary

Story summary

Economist Diane Swonk warns data collection issues have made inflation metrics unreliable, signaling U.S. economic fragility.
Staffing shortages at the Bureau of Labor Statistics have produced more than one-third of price data as estimates rather than observations.
Swonk calls it a K-shaped economy, with affluent households spending freely while lower-income consumers struggle.
She anticipates a dramatic slowdown in the fourth quarter, worsened by rising delinquencies and a difficult holiday season.

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Story summary

Economist Diane Swonk warns data collection issues have made inflation metrics unreliable, signaling U.S. economic fragility.
Staffing shortages at the Bureau of Labor Statistics have produced more than one-third of price data as estimates rather than observations.
Swonk calls it a K-shaped economy, with affluent households spending freely while lower-income consumers struggle.
She anticipates a dramatic slowdown in the fourth quarter, worsened by rising delinquencies and a difficult holiday season.