US Shutdown Threatens to Erode Quality of Important Inflation Data

The ongoing US government shutdown has raised concerns about the potential impact on the quality and availability of crucial inflation data. The Bureau of Labor Statistics, responsible for compiling the Consumer Price Index (CPI), a key measure of inflation, may be unable to collect and analyze the necessary data due to the lack of government resources during the shutdown. This could lead to delays or even the absence of CPI reports, which are closely monitored by policymakers, investors, and the public. The potential disruption to this important economic indicator could make it more challenging for the Federal Reserve and other decision-makers to assess the state of the economy and make informed policy decisions. The shutdown's effects on the CPI data could erode the credibility and reliability of this crucial economic statistic, which serves as a benchmark for various financial contracts and government programs. Restoring the integrity of the CPI data once the government reopens may also prove challenging, potentially lingering for some time.