Unprecedented Move: October Inflation Report Scrapped
In a decision that has rattled economists and investors alike, the US government will cancel the October inflation report following the longest federal shutdown in history. Anonymous Bureau of Labor Statistics (BLS) sources confirm the data gaps from the 35-day closure are too severe to ensure accuracy—raising concerns about economic transparency during political crises.
How the Shutdown Derailed Critical Data
The standoff over border wall funding didn’t just furlough workers—it froze the collection of key economic indicators. Agencies like the BLS and Census Bureau, tasked with compiling inflation, employment, and GDP metrics, operated with skeletal crews or closed entirely.
Now, missing and inconsistent data has forced officials to withhold October’s Consumer Price Index (CPI), originally slated for release next week. “Publishing compromised figures would mislead the public and policymakers,” a BLS staffer admitted.
The Ripple Effects on Markets and Policy
The CPI report is vital for Federal Reserve decisions on interest rates. With the Fed already cautious amid global instability, the missing data creates uncertainty. Economists warn this vacuum could spike market volatility.
“Investors rely on trustworthy data,” said Diane Swonk of Grant Thornton. “Without it, reactions become speculative and erratic.” Some analysts predict the Fed may postpone policy moves until clearer numbers emerge.
Political Backlash and Calls for Reform
Democrats tie the disruption to Trump-era shutdown tactics, while Republicans accuse the BLS of exaggeration. “This is avoidable dysfunction,” argued a GOP representative. Meanwhile, experts stress the need for safeguards.
“Economic reporting can’t be collateral damage,” said Jason Furman, former White House advisor. “Future shutdowns mustn’t compromise data integrity.”
Looking Ahead: Delays and Alternatives
While the BLS aims to normalize operations, November’s report could also face delays. Economists will turn to private-sector surveys and retail data as stopgaps.
The debacle underscores a hard truth: political gridlock carries real economic costs.
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