It’s Friday, and we finally have inflation numbers.
The report showed that inflation came in cooler than expected at 0.3% versus a forecast of 0.4%. The U.S. Bureau of Labor Statistics (BLS) completed the report nine days past the due date and five days before the Federal Open Market Committee’s (FOMC) decision.
In a statement released today, Karoline Leavitt said, “Under President Trump, America is back – but inflation is not.”
Normally, the BLS releases the Consumer Price Index (CPI) report around the middle of the month, typically in the middle of the week. But America’s not in a normal situation, as today is the 24th day of the government shutdown.
To get the inflation numbers from the Social Security Administration (SSA), the Department of Labor brought back furloughed employees to complete September’s CPI report. The Social Security Administration uses CPI as a benchmark for cost-of-living adjustments when issuing benefit checks. The SSA needed September’s numbers.
The FOMC decision will be based on the analysis of September’s CPI report. However, the looming FOMC decision wasn’t enough on its own to bring back the furloughed employees. And the Social Security Administration’s need for the numbers most likely won’t be enough to get a report generated for October.
Every month, the BLS dispatches staff to collect price data for everyday goods. Before the shutdown, they had already done their “field work” for September, allowing the Bureau of Labor Statistics to finalize the report. Since the lapse in appropriations, employees were not dispatched to gather data for October.
Join us now during our exclusive Deal of the Decade. Get everything for $7 a month. Not as fans. As fighters. Go to DailyWire.com/Subscribe to join now.
This month, the main driver of inflation was gasoline, which rose 4.1%. In times of high global tensions and uncertainty, this index typically increases. Wars and sanctions, or even the fear of them, can drive up gas demand, often raising prices. Sanctions and international conflict have the potential to cause shortages and supply shocks, sending the price of gasoline skyward.
On Thursday, the Department of the Treasury’s Office of Foreign Assets Control expanded sanctions on Russia’s two largest oil companies. The effects of those sanctions will appear in the next report that the Bureau of Labor Statistics provides.
Energy also rose 1.5%. In most years, energy typically falls as the cooler months approach. However, America is not in a normal year for energy. AI demands energy. Secretary of Energy Chris Wright stated in a letter to Congress this week that the “United States is experiencing an unprecedented surge in electricity demand.” AI Infrastructure and Data Centers require vast amounts of energy, and that demand is only expected to increase as the technology expands.
Based on information provided by the U.S. Inflation Calculator, since Trump took office, inflation has averaged 2.65% each month.
Senate Minority Leader Chuck Schumer (D-NY) stated, “The inflation report today is just the latest warning sign that Donald Trump continues to squeeze the life out of working people in our economy.”
The Biden Administration had an inflation average of 4.9%. The Federal Reserve has a goal of keeping inflation at 2%.
.png)
.png)
