Shutdown Clouds CPI Report As Analysts Debate Reliability Of Inflation Data And Market Impact

Benzinga

Friday’s CPI report will be released during the government shutdown, raising concerns over data quality amid BLS staffing limits. Economists expect 3.1% annual inflation as markets anticipate Fed rate cuts in the coming months.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02The September Consumer Price Index report due Friday will be the lone major economic release

00:06during the government shutdown, drawing intense market scrutiny.

00:09Wall Street analysts warn that data quality can be compromised as the Bureau of Labor Statistics

00:13compiles the report with limited staff, and according to CNBC.

00:17The agency has faced mounting criticism this year over its analog data collection methods

00:20and staffing cuts following President Donald Trump's dismissal of former BLS Commissioner

00:25Erica McEntarford.

00:26Economists expect headline and core CPI to rise 3.1% year over year, with monthly gains of

00:320.4% and 0.3% match in August.

00:35Morgan Stanley's Mike Wilson said that upcoming CPI data is unlikely to reveal new insights

00:39but could give that justification to pursue deeper rate cuts.

00:43Markets expect the Federal Reserve to cut interest rates by 25 basis points next week and again

00:48in December with uncertainty out of 2026 as Trump pushes for deeper rate cuts.

00:52For all things money, visit Benzinga.com.

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