www.foxbusiness.com
The upcoming December CPI report is expected to show elevated inflation, with consensus forecasts predicting a 2.6% annual increase. However, economists warn that the recent 43-day government shutdown has severely disrupted data collection, rendering this report “muddy” and unreliable.
To compensate for missed surveys, the Bureau of Labor Statistics used a “carry-forward” methodology, assuming prices remained static during the shutdown period. Analysts warn this created a “downward bias” on inflation figures, particularly in the housing sector. Consequently, experts caution that inflation numbers will remain artificially depressed through April 2026, making it difficult to gauge true economic trends in the interim.
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