US CPI Released 30 Minutes Early...Authorities Say "Investigation Underway"

The Consumer Price Index (CPI), a key inflation indicator that can gauge the direction of U.S. monetary policy, was released 30 minutes earlier than the originally scheduled time on the 15th (local time), prompting authorities to investigate procedures to prevent a recurrence of the incident.

[Image source= Xinhua News Agency]

The U.S. Bureau of Labor Statistics (BLS) stated on the day, "Due to carelessness, some files were posted on the website about 30 minutes before the CPI data release," adding, "We take data security very seriously." It also added, "We are conducting a full investigation into procedures and management to prevent a recurrence of the incident." The BLS has also reported the matter to the Office of Management and Budget and the Department of Labor Inspector General.

The monthly CPI, a major inflation indicator, is usually released at 8:30 a.m. Eastern Time. It is well known for following strict protocols to prevent information leaks. Wall Street investors and central bank officials closely examine this figure to find signals about the economic outlook. If unexpected data is released, the market tends to fluctuate significantly.

However, despite the data being released 30 minutes early that day, no sharp market fluctuations were observed. After the official release at 8:30 a.m., U.S. stock index futures surged and Treasury yields fell. The core CPI increase rate for April (3.6%) hit its lowest level in three years, spreading expectations for interest rate cuts in the second half of the year, and the three major New York stock indices all closed higher.

However, Bloomberg News reported that questions are being raised inside and outside Wall Street about how sensitive economic indicators that could affect the Federal Reserve's monetary policy direction and financial markets could be released earlier than scheduled. Woo Mingzhe, a currency trader at StoneX Financial, said, "There was generally not much trading in the market immediately after the data was released early," adding, "If investors noticed this early, 30 minutes is a 'very long' time for the market to react."

According to the news agency, this is not the first time BLS's data management practices have been problematic. Just a month ago, the news reported that an economist affiliated with the BLS exchanged inflation-related data with major Wall Street firms such as JPMorgan Chase and BlackRock, pointing out issues arising from this.

In 2022, concerns about information leaks and hacking arose when Treasury futures rebounded seconds before better-than-expected inflation data was released. At that time, the BLS stated that it found no evidence of system damage or suspicious activity due to hacking.