Inflation Report Disruption: First Absence in Decades Looms Amid Government Shutdown

The government shutdown is expected to halt the release of the monthly inflation report for the first time in over seventy years. This disruption deprives Wall Street and the Federal Reserve of essential consumer price data. Past methods to compile the report may not be viable this time.

A historic first is on the horizon as the White House announced that, due to the ongoing government shutdown, next month's inflation report might not be released. This marks the first absence of such a report in over seventy years, potentially leaving Wall Street and the Federal Reserve without significant data on consumer prices.

The inflation data, traditionally gathered by government employees visiting retail outlets across the United States, faces collection disturbances. While some data is electronically acquired, a substantial portion that requires in-person collection is at risk. This is especially concerning given the Bureau of Labour Statistics' recent struggles with staffing shortages following the Trump administration's hiring freeze.

September's inflation report, released late after a nine-day delay, showed a slight increase in prices, though still lower than many economists' forecasts. This report was based on data before the shutdown began. In previous shutdowns, the consumer price index was crafted using incomplete data, but the Labor Department warns this might not be feasible this time.

(With inputs from agencies.)