Core PCE Inflation May Drop 0.2% as BEA Adjusts Calculation Methods
2026-07-07 09:26

Woofun AI reports that the US Bureau of Economic Analysis will modify calculation methods for the Personal Consumption Expenditures Price Index, with revisions expected in September 2026. Market estimates suggest core PCE inflation could decrease by approximately 0.2 percentage points. The adjustments focus on portfolio management, computer software, and legal services. Current core PCE stands at 3.4%, above the Federal Reserve's 2% target since March 2021. Former Fed Governor Miran highlighted measurement errors in service consumption quantities, while JPMorgan noted potential impacts on Treasury yields.

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Miran
Alessandro Barbarino
Anthony M. Diercks
Abiel Reinhart
JPMorgan
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