The Fed won’t obtain key inflation information earlier than its subsequent rate of interest choice because the BLS cancels October CPI launch

The U.S. Bureau of Labor Statistics is the primary federal agency responsible for measuring labor market activity, working conditions, and price changes in the economy.

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The Bureau of Labor Statistics said it would cancel the October consumer price index release so the Federal Reserve would not be able to consider key inflation data when it next decides on interest rates on Dec. 10.

The CPI data, originally scheduled to be released Nov. 7, was canceled because the government shutdown made it impossible for the BLS to “retroactively collect” certain portions of the survey data, the agency said on its website.

November CPI data, originally scheduled for release on Dec. 10, will now be released on Dec. 18 following the Fed’s decision, the BLS said.

The bureau’s data collectors are creating the index in a variety of ways, including in-person visits and phone calls, which were not possible during the shutdown. The BLS also uses online data and household surveys, which would also make it difficult to collect information retroactively.

In addition to the Fed announcement, the Commerce Department’s Bureau of Economic Analysis said another key inflation indicator, the consumer spending price index, will be “reset,” although no firm date has been announced yet. The Fed uses the PCE price index as its primary tool for forecasting inflation. The release was scheduled for November 26th.

Fed officials have expressed concerns that they could be stuck in a data fog when formulating their monetary policy. The central bank’s Federal Open Market Committee agreed to cut interest rates by a quarter of a percentage point in late October, but meeting minutes reflected concerns about providing an incomplete picture.

“This is a temporary situation. And we will do our job, we will collect all the data we can find, evaluate it and think carefully about it,” Fed Chairman Jerome Powell said after the October meeting. “What do you do when you drive in fog? You slow down. … There’s a possibility that it would make sense to be more careful when moving.”

However, New York Fed President John Williams said Friday he believes the Fed likely has “room to adjust further in the near term,” implying the likelihood of a rate cut soon.

Other Fed officials, like Gov. Christopher Waller, said that despite the data drought caused by the shutdown, policymakers still have enough information to make informed decisions.