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Ben Casselman: Method change leads to lower January PCE inflation, raises disclosure questions
A recent change in the data source for legal services prices resulted in a notable decrease in monthly PCE inflation in January.
Ben Casselman reports that this methodological adjustment is now prompting questions about the reasons behind the change and the lack of public disclosure. The development has increased scrutiny on how such revisions are communicated to the public.
The heightened attention to data revisions mirrors ongoing concerns Ben Casselman has explored, such as the impact of external events like the government shutdown on inflation data accuracy. The latest developments also arrive amid shifting labor dynamics, a subject Casselman analyzed in depth when the U.S. unemployment rate climbed to 4.4 percent in February, underscoring the sensitivity of key economic indicators to methodological changes and reporting transparency.
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