Amid the government shutdown, the Bureau of Labor Statistics (BLS) is bringing back a portion of its workforce to finalize the essential Consumer Price Index (CPI) report, as reported by a Trump administration official to CNN.
This CPI report was initially set for release on October 15 but has now been pushed to October 24. The timing is critical as it coincides with the adjustment of Social Security benefits for the upcoming year.
The BLS noted, “This release allows the Social Security Administration to meet statutory deadlines to ensure the accurate and timely payment of benefits,” in a statement shared on their website. They also indicated that no other reports would be rescheduled until the government resumes normal operations.
Since the funding lapse on October 1, the BLS has suspended all regular operations, with only one employee assigned full-time duties during this period. This led to a significant halt in crucial data collection and analysis, as detailed in contingency plans from the US Department of Labor, which supervises the BLS.
A Trump official reiterated to CNN that the absence of September’s CPI data could potentially jeopardize the annual increase of Social Security benefits that typically takes place in January, even though benefits continue being distributed during the shutdown.
Consequently, additional personnel will be called back to complete the September CPI report on an as-needed basis.
Last week, the monthly jobs report from the BLS, usually released on the first Friday of each month, was also not published.
Impact on Social Security
Social Security beneficiaries receive an annual cost of living adjustment (COLA) aimed at helping them combat inflation. This adjustment is based on inflation data from the third quarter of the year, which includes September. Typically, the COLA figure is announced shortly after the BLS releases the September CPI information.
In the shutdown contingency planning, the Labor Department acknowledged that delaying the CPI report could subsequently postpone the COLA announcement.
For the current year, many seniors, and people with disabilities received a 2.5% COLA increase, which was lower than the increases from previous years due to a steady decline in inflation anticipated for 2024. Over 74 million individuals rely on monthly Social Security payments.
The Social Security Administration has not yet responded regarding when they will announce the COLA for 2026.
