A Statistical Revamp Is About to Lower Inflation, at a Critical Time

An acceleration in the Federal Reserve’s preferred measure of inflation has some officials warning that higher interest rates might be in order.

A bit of relief, though, is on its way—not from prices themselves, but the way they are measured. The agency responsible for publishing the Fed’s preferred measure, the price index of personal-consumption expenditures, plans to revamp how it handles three components.

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