The new money would enable the Bureau of Economic Analysis and the Bureau of Labor Statistics, two of the government's data-gathering agencies, to improve measurement of inflation and output. The budget requests were prompted in part by concern that data weren't keeping up with changes in the economy.
Inflation is tough to gauge too.
While the current consumer price index captures some of that shift, the BLS makes some key adjustments only once every 10 years. With the added funding, it'll do so every two years. Moreover, knowing that inflation is lower and productivity higher could allow the Federal Reserve to reduce interest rates. World Report Inc. All rights reserved.