White House says October inflation, labor market data may not be released due to shutdown

By Mucahithan Avcioglu

ISTANBUL (AA) - White House press secretary Karoline Leavitt stated Wednesday that key economic reports for October, including inflation and jobs data, may not be released because of the government shutdown.

“The Democrats may have permanently damaged the Federal Statistical System, with the October consumer price index (CPI) and jobs reports likely never being released,” Leavitt said during a press conference at the White House.

"All of that economic data released will be permanently impaired, leaving our policymakers at the Fed flying blind at a critical period," she noted.

As the shutdown continued for more than six weeks—the longest in history—the release of crucial economic data has been at the top of the economic concerns.

The CPI and the Labor Department's Bureau of Labor Statistics' monthly nonfarm payrolls count are two of the most significant publications. Retail sales, import and export statistics, consumer expenditure, and income are among the other variables affected.

Despite the delay, most economists expected the data to be published in its entirety. However, Leavitt's remarks raised concerns about whether the data would actually be released.

"The Democrat shutdown made it extraordinarily difficult for economists, investors, and policy makers at the Federal Reserve to receive critical government data," according to Leavitt.

She added that the shutdown could reduce economic growth in the fourth quarter by up to two percentage points.

According to a report released by the Congressional Budget Office (CBO) on Oct. 29, the shutdown could cost the American economy $7 billion to $14 billion, reducing fourth-quarter GDP by up to 2% due to a spending slip.

The shutdown's end is in sight, as the Senate passed a bill on Tuesday to finance the federal government until January and end the longest government shutdown in American history.

The bill was moved to the House of Representatives after passing 60-40 with support from almost all Republicans and several Democratic senators. The House is expected to vote later Wednesday to end the shutdown.