New PCE Inflation Methodology, Similar Results
The Bureau of Economic Analysis will update the PCE price index methodology on September 30, affecting data from 2021. Early indications suggest the changes will not significantly alter the overall inflation picture.
The Bureau of Economic Analysis (BEA) is set to implement several methodological changes to the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. These revisions will be introduced as part of the BEA’s annual update on September 30 and will affect data going back to 2021.
According to the source, the updated methodology is expected to produce results that are broadly similar to the current series, implying no major revision to the inflation narrative. The specific adjustments have not been detailed, but the outcome is described as "same-ish."
Source: FXStreet Forex News