Seasonal Adjustments
Seasonal adjustments are statistical techniques used to remove the effects of seasonal variations in data. This process helps analysts and policymakers better understand underlying trends by isolating changes that occur at specific times of the year, such as increased retail sales during the holiday season or higher unemployment rates in winter months.
By applying seasonal adjustments, data becomes more comparable across different time periods. For example, the Consumer Price Index (CPI) can be adjusted to reflect true inflation trends without the influence of seasonal price fluctuations, allowing for more accurate economic analysis and decision-making.