Labor Department Resumes CPI Inflation Report Amid Federal Shutdown
The U.S. Department of Labor has announced the resumption of work on the September Consumer Price Index (CPI) inflation report despite the ongoing federal government shutdown. This move ensures the release of critical inflation data that had been temporarily paused due to funding lapses.
According to a White House official, the Bureau of Labor Statistics (BLS) will “promptly resume” compilation of the CPI data, with publication scheduled for 8:30 a.m. ET on October 24 — a delay of nine days from the initial release date.
Significance of the CPI Report
The Consumer Price Index tracks price changes across a broad range of goods and services, providing a vital gauge of inflation trends in the U.S. economy. Its timely release is essential for policymakers, investors, and businesses monitoring economic conditions.
The Social Security Administration (SSA) depends on the third-quarter CPI data to calculate and publish annual cost-of-living adjustments (COLAs) for Social Security benefits. These adjustments are scheduled to be finalized before November 1, making the CPI report’s publication a priority despite the shutdown.
Broader Impact of the Government Shutdown on Economic Data
The federal government shutdown, which began last week following a funding lapse, has disrupted the release of multiple economic reports. Most notably, the Bureau of Labor Statistics has postponed other key data releases, including the nonfarm payroll report, which remains unpublished as originally scheduled.
Efforts to end the shutdown have stalled in the Senate, which has failed to pass funding bills for the seventh time. This ongoing impasse continues to create uncertainty in the dissemination of critical economic data.
“The Bureau of Labor Statistics will promptly resume work on the CPI data to meet essential deadlines,” a White House official said, underscoring the priority given to inflation reporting amidst the shutdown.
Bloomberg News initially reported the decision to recall BLS employees to complete the CPI report. CNBC’s Steve Liesman contributed to this coverage.
FinOracleAI — Market View
The partial resumption of the CPI report amid a government shutdown reflects the critical nature of inflation data for economic policy and social programs. While the delay introduces short-term uncertainty, the prioritized release mitigates risks associated with Social Security adjustments and market volatility.
- Opportunities: Timely CPI data supports informed monetary policy decisions and maintains Social Security benefit integrity.
- Risks: Continued shutdown may delay other key economic indicators, increasing market uncertainty.
- Potential for increased volatility around delayed reports impacting financial markets.
- Government funding impasse poses ongoing operational challenges for data agencies.
Impact: The decision to resume CPI reporting is a positive development, ensuring continuity in inflation tracking and social program adjustments despite broader shutdown disruptions.
