- The Bureau of Economic Analysis is updating the methodology for calculating prices in portfolio management, computer software, and legal services within the Personal Consumption Expenditures (PCE) Price Index.
- The revisions, set to be included in data released on September 30, aim to better reflect actual price dynamics rather than market performance in categories like asset management.
- Market analysts estimate these technical adjustments will reduce the core PCE inflation rate by about 0.2 percentage points at a time when inflation has remained above the Federal Reserve's 2% target for several years.
Quotes
“What ought to be recorded as an increased quantity of services consumed is instead recorded as increased prices”
“Grand Theft Auto VI may yet have a chance to move the Treasury curve”
“Given the growing mistrust around official data, we urge the BEA to act with more transparency around timing, weights, and historical revisions”