Misleading CPI, Misleading Business Surveys, Reliable Claims

Now that the government shutdown is over, the Bureau of Labor Statistics (BLS) is releasing economic indicators again. However, the quality of the latest releases is an issue. Today's lower-than-expected November CPI inflation report boosted stock and bond prices after its release. But the gains faded as economists started to question the CPI numbers. Indeed, the release included a warning that the government shutdown might have distorted the BLS's efforts to collect the CPI data.

BLS calculates rent and owners' equivalent rent using a six-month panel collection. October's missing CPI data may have distorted the latest inflation report (chart).