The US Bureau of Economic Analysis plans to change how it measures parts of the Federal Reserve's preferred inflation gauge, The Wall Street Journal reported on Sunday. The move is expected to lower reported core personal consumption expenditures inflation by about 0.2 percentage points.
The revisions will affect portfolio management, software, and legal services, and will be applied retroactively to 5 years of data. Economists cited by The Wall Street Journal said the new approach should reduce distortions caused by rising asset values and hardware prices, which are reflected in service and software costs.
The changes are due to appear with the August data published on September 30. While officials describe them as routine statistical improvements, the timing is sensitive because Federal Reserve policymakers are debating whether inflation remains high enough to justify further rate increases.
https://breakingthenews.net/Article/US-inflation-gauge-set-for-statistical-revamp/66725729
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