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US inflation data was accidentally released 30 minutes early
(Bloomberg) — The U.S. Bureau of Labor Statistics inadvertently published Consumer Price Index data 30 minutes early Wednesday, raising new questions about how the agency releases some of the world’s most sensitive economic information.
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While there were no obvious signs that the initial release influenced markets, the episode is likely to prompt a closer look at the release of data that has implications for global asset prices and Federal Reserve policy.
“Prior to today’s releases of the CPI and actual earnings, the BLS inadvertently uploaded a subset of files to the website approximately 30 minutes before the release,” the agency said in a statement posted on its website Wednesday evening.
The BLS typically releases its monthly consumer price report at 8:30 a.m. in Washington and is subject to strict protocols designed to prevent its early release. The numbers are closely scrutinized by investors and central bank officials as they look for signs about the direction of the economy.
U.S. stock index futures jumped and Treasury yields fell immediately after media outlets including Bloomberg News released official CPI data at 8:30 a.m., with the S&P 500 index ending the day at an all-time high. There were no sudden movements in the half-hour period between the early release of the data and the scheduled date.
“I suspect the general market was not trading on this early release,” said Mingze Wu, a foreign exchange trader at StoneX Financial in Singapore. Still, Wu noted that 30 minutes would be “too long” a time for traders to react to an early data release if they become aware of it.
Read more: US inflation slows for first time in six months in relief for Fed
This isn’t the first time BLS’s data practices have come under scrutiny. A month ago, Bloomberg News reported that a BLS economist corresponded on data related to a key U.S. inflation indicator with major Wall Street firms such as JPMorgan Chase & Co. and BlackRock Inc., raising questions about equitable access.
In December 2022, a rebound in Treasury bond futures seconds before better-than-expected inflation data hit the BLS website led to concerns about a possible leak or hack. The BLS said at the time that it found no evidence that its systems were compromised or that there was any suspicious activity surrounding the launch.
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The agency said it notified the Office of Management and Budget and the Department of Labor’s Office of Inspector General about Wednesday’s incident.
“BLS takes the security of its data seriously and is conducting a thorough investigation into its procedures and controls to ensure the incident does not repeat itself,” the agency said.
–With assistance from Ruth Carson and Abhishek Vishnoi.
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