A Statistical Revamp Is About to Lower Inflation, at a Critical Time
The Federal Reserve's preferred inflation gauge is facing a statistical overhaul that may lower reported inflation numbers.
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The brief
The Bureau of Economic Analysis is overhauling the methodology of the PCE price index. According to coverage from Seeking Alpha and the WSJ, this statistical revamp is expected to result in a downward revision of the inflation gauge.
Reporting from Breakingthenews.net and TradingView emphasizes research from the St. Louis Fed regarding new ways to measure underlying inflation.
Additionally, KC Fed's Schmid and Grand Island have suggested that the time has come to stop excluding food prices from core inflation and that the term 'core' should be changed. Future focus remains on how these methodological changes will affect the Fed's preferred gauge and why inflation figures may appear lower even if costs remain high, as noted by 24/7 Wall St.
Synthesized by Newsylist from the headlines below under a strict no-invention contract. ✓ fact-checked: all claims supported by sources Updated 5h ago.
Quick answers
Which agency is changing the inflation measurement?
The Bureau of Economic Analysis is overhauling the PCE price index methodology.
What is the expected impact of the revamp?
Coverage indicates the change is set for a downward revision, potentially lowering the Fed's preferred inflation gauge.
What specific change to 'core' inflation was suggested?
KC Fed's Schmid and Grand Island suggested ending the exclusion of food prices from core inflation and changing the term 'core'.
Coverage (8)
- US inflation gauge set for statistical revamp Breakingthenews.net · 1d ago
- St. Louis Fed research floats new way to measure underlying inflation investingLive · 1d ago
- KC FED'S SCHMID/GRAND ISLAND: STILL THINK TIME TO STOP EXCLUDING FOOD PRICES FROM CORE INFLATION; 'CORE' SHOULD BE CHANGED TradingView · 1d ago
- Why Inflation May Suddenly Look Better Even Though Everything Still Costs More 24/7 Wall St. · 1d ago
- St. Louis Fed research floats new way to measure underlying inflation TradingView · 1d ago
- Bureau of Economic Analysis overhauls PCE price index methodology, potentially lowering the Fed's preferred inflation gauge Crypto Briefing · 1d ago
- Fed’s preferred inflation gauge set for downward revision Seeking Alpha · 1d ago
- A Statistical Revamp Is About to Lower Inflation, at a Critical Time WSJ · 1d ago broke it first
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