Government Shutdown Triggers Data Blackout: US Inflation Report in Jeopardy

The Bureau of Labor Statistics was scheduled to report the October consumer price index on Thursday, yet the government's closure has not only delayed its release but also halted in-person data collection. It is increasingly likely the BLS will forgo issuing an October CPI report altogether. The shutdown has also delayed the release of two monthly jobs reports, further exacerbating the data fog that is enveloping the Federal Reserve. The prolonged government shutdown has had a significant impact on the availability of economic data, with many reports and surveys being delayed or cancelled. The BLS typically collects data from businesses and households in person, but with the shutdown, these collections have been put on hold. As a result, the agency is facing a significant challenge in meeting its reporting deadlines. According to a BLS spokesperson, the agency is working to find alternative methods to collect data, but it is unclear whether this will be sufficient to meet the reporting deadlines. "We are doing everything we can to collect the data, but it's a challenging situation," said the spokesperson. "We will do our best to provide the data as soon as possible, but we cannot guarantee that it will be on time." The delayed release of economic data is having a significant impact on the Federal Reserve, which relies on these reports to inform its monetary policy decisions. The Fed has been divided in recent months, with some members advocating for a rate cut and others pushing for a rate hike. The delayed data is only adding to the uncertainty, making it more difficult for the Fed to make informed decisions. The shutdown has also had a broader impact on the economy, with many businesses and households being affected by the lack of data. "The shutdown is having a ripple effect throughout the economy, and it's not just the government that's being affected," said economist Mark Zandi. "Businesses and households are also being impacted, and it's going to take some time to recover from this." The current status of the data fog is uncertain, with many reports and surveys being delayed or cancelled. The BLS is working to find alternative methods to collect data, but it is unclear whether this will be sufficient to meet the reporting deadlines. The Federal Reserve is also facing a significant challenge in making informed decisions, with the delayed data adding to the uncertainty. In the coming weeks, the BLS is expected to announce whether it will release the October CPI report. If the report is delayed, it will be the third consecutive month that the BLS has missed its reporting deadline. The impact of the shutdown on the economy and the Federal Reserve will continue to be felt in the coming weeks and months, and it remains to be seen how the situation will unfold.