Federal Reserve to Revise 3 Inflation Categories, Trimming Readings by 0.2%
Updated
Updated · Truthout · Jul 8
Federal Reserve to Revise 3 Inflation Categories, Trimming Readings by 0.2%
1 articles · Updated · Truthout · Jul 8
Summary
This fall, the Fed-backed inflation gauge will change pricing methods for portfolio management, legal services, and computer software and accessories, a shift the BEA says will shave about 0.2% off reported inflation.
BEA says the revisions are meant to better reflect true consumer costs, but the timing is drawing scrutiny because lower readings will arrive amid already weak public trust in federal economic data.
That skepticism has been sharpened since Donald Trump fired the BLS chief last year after criticizing jobs reports, making any methodology change politically sensitive.
57% of Americans now say the economy is getting worse, while June CPI rose 4.2% from a year earlier and food staples such as coffee, beef, and produce climbed even faster.