The U.S. federal government has decided not to release official data on inflation for October, which hinders the Federal Reserve’s ability to make informed decisions regarding interest rate adjustments. The Bureau of Labor Statistics announced the cancellation of the consumer price index (CPI) report for October due to repercussions from the recent government shutdown, the longest in U.S. history. The bureau stated that it was not feasible to retroactively collect the data necessary for the report.
This lack of data creates uncertainty about the current state of the U.S. economy. Jerome Powell, the Federal Reserve Chair, previously compared the central bank’s task of navigating the economy without reliable data to “driving in the fog.” Moreover, the most recent CPI reports have indicated that price growth remains above typical levels.
Amid rising demands for action on inflation from former President Donald Trump, who has recently taken steps to address affordability concerns, the Federal Reserve is weighing potential interest rate cuts. The central bank had raised rates significantly in 2022 and 2023 to combat inflation but began to cautiously cut rates late last year.
Powell has emphasized the need for careful decision-making in light of the absence of critical economic data, stating, “What do you do if you’re driving in the fog? You slow down.” Nevertheless, expectations for another rate cut in December were heightened by comments from John Williams, president of the Federal Reserve Bank of New York, who noted that there remains “room for a further adjustment in the near term” to interest rates.
Additionally, the September jobs report, released after a delay due to the shutdown, indicated a mixed labor market with 119,000 jobs added. However, the unemployment rate increased to its highest level since 2021. The complete October jobs report will not be published; instead, some data from that month will be included with the November report, set for release after the next Federal Reserve meeting.
Source: https://www.theguardian.com/business/2025/nov/21/october-inflation-report-cancelled-fed-rate