Svmuu News: The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) recently announced that it will adjust certain calculation methods for the Personal Consumption Expenditures (PCE) Price Index; the changes are expected to be reflected in the data revisions released on September 30, 2026.Broad market estimates indicate that this adjustment will likely lower the core PCE inflation rate by approximately 0.2 percentage points.Current data show that core PCE inflation stood at 3.4% over the 12 months ending in May 2026 and has remained above the Federal Reserve’s (Federal Reserve) 2% target since March 2021.In this round of adjustments, the BEA primarily revised price calculation methods for three specific sectors: portfolio management and investment advisory services, computer software and accessories, and legal services.
Former Federal Reserve Board Member Miran stated in a speech last December, “What should have been recorded as an increase in the volume of services consumed was instead recorded as a price increase.”” In a paper published this May, Miran, along with Federal Reserve economists Alessandro Barbarino and Anthony M. Diercks, analyzed the shortcomings of existing statistical methods, including measurement issues related to products such as portable storage devices and video games. JPMorgan Chase Economist Abiel Reinhart noted, “Grand Theft Auto 6 might also have the potential to influence the U.S. Treasury yield curve.”