Subbed data source, lower inflation estimate

"Data on legal services usually comes from the consumer index. But the Bureau of Labor Statistics, which has struggled with budget cuts and staff attrition, hasn't been able to collect enough data in recent years to publish the legal services index consistently. It has continued to provide the data to the Bureau of Economic Analysis, but the monthly readings have been volatile."

"In January, the C.P.I. for legal services jumped more than 11 percent, according to analyses of data from the Bureau of Labor Statistics conducted by private-sector forecasters. As a result, the Bureau of Economic Analysis decided to base its estimate of legal prices in January on the producer price data, which has been less volatile."

"The challenge with comparing data over time is that methodology needs to stay the same or at least get a footnote so that analysts can adjust. The BEA responded that this was not a methodology change and just a substitute for volatile data, which seems convenient given the current state of government data."

The Bureau of Economic Analysis changed its data source for legal services pricing in January, shifting from consumer price index data to producer price data. This change occurred because the Bureau of Labor Statistics, facing budget constraints and staff shortages, could not consistently collect sufficient consumer price data for legal services, resulting in volatile monthly readings. A January consumer price index jump of over 11 percent for legal services, lacking clear justification, prompted the switch. The Bureau of Economic Analysis justified this as a practical substitution for volatile data rather than a methodology change. However, this undisclosed adjustment raises concerns about data consistency and transparency, as methodology changes typically require documentation to allow analysts to make proper comparisons over time.

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