It’s all bullshit all the way down.
Part of the reason for the cooler reading is that the Bureau of Economic Analysis updated its methodology for calculating specific components of the PCE price index, retroactive to 2021.
The BEA has changed how it calculates inflation across three categories: computer software, legal fees, and investment advice. Two of those categories — computer software and investment advice — have experienced sharp price increases over the past year, which some economists say have artificially increased the overall inflation number.
Capital Economics' Brown said the price revisions reduced the annual inflation rates for both the affected components. Together, he estimated they took 0.3% off overall core inflation.
https://finance.yahoo.com/economy/policy/article/pce-inflation-eases-to-34--cooling-the-case-for-another-fed-rate-hike-125513195.html
Part of the reason for the cooler reading is that the Bureau of Economic Analysis updated its methodology for calculating specific components of the PCE price index, retroactive to 2021.
The BEA has changed how it calculates inflation across three categories: computer software, legal fees, and investment advice. Two of those categories — computer software and investment advice — have experienced sharp price increases over the past year, which some economists say have artificially increased the overall inflation number.
Capital Economics' Brown said the price revisions reduced the annual inflation rates for both the affected components. Together, he estimated they took 0.3% off overall core inflation.
https://finance.yahoo.com/economy/policy/article/pce-inflation-eases-to-34--cooling-the-case-for-another-fed-rate-hike-125513195.html
1❤️1
