Shutdown Could Delay October CPI, Weighing on Fed

The White House said on Friday that the federal government shutdown is likely to prevent the release of next month’s Consumer Price Index, a key inflation report prepared by the Bureau of Labor Statistics, warning the gap would leave policymakers, markets and businesses without crucial price data. The announcement came as the shutdown, which began Oct. 1 after Congress failed to approve temporary funding, forced many BLS staff to be furloughed and halted routine field collection of prices.

Officials said the Labor Department has suspended most Bureau of Labor Statistics field operations because surveyors cannot be deployed to gather retail and service prices. The White House posted a message saying, "Surveyors cannot deploy to the field depriving us of critical data. The economic consequences could be devastating." The agency did bring back a small number of workers to process data already collected in September and released a delayed September CPI on Friday so the Social Security Administration can calculate next year’s cost of living adjustment.

CPI compilation depends heavily on in-person visits to stores and businesses to record prices, though some data are collected...