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The Bureau of Economic Analysis is revising the methodology behind three subcategories of the Personal Consumption Expenditures Price Index, with updated data due September 30.
Analysts have coalesced around a consensus view that the changes will reduce core PCE inflation by roughly 0.2 percentage point — meaningful relief for a measure that registered 3.4% for the 12 months ended in May and has not touched the Federal Reserve's 2% target in a single month since March 2021.
The technical case for the revisions is defensible, but the political timing is not.
What the BEA Is Changing The three affected subcategories are portfolio management and investment advice services, computer software and accessories, and legal services.
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