[The U.S. PCE Calculation Methodology to Change, Fed's Favorite Inflation Gauge May Be 'Manually' Cooled] According to a report by Jinse Finance, on July 7, the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) recently announced adjustments to certain calculation methods in the Personal Consumption Expenditures Price Index (PCE), an inflation indicator heavily relied upon by the Federal Reserve. These changes are expected to be reflected in data revisions released on September 30, 2026, potentially making inflation readings later this year appear slightly lower. Based on general market estimates, this adjustment is expected to lower the core PCE inflation rate by approximately 0.2 percentage points. Current data shows that core PCE inflation over the 12 months ending in May 2026 stands at 3.4%, and it has remained above the Federal Reserve's 2% target since March 2021. The BEA's adjustments primarily focus on three subcategories of price calculation: portfolio management and investment advisory services, computer software and accessories, and legal services. For example, in asset management services, the current statistical method often directly follows market performance fluctuations rather than reflecting actual price changes. For instance, when an investor pays a fixed 1% management fee and their portfolio increases by 20%, the statistics would record a 20% increase in the price of asset management services. Former Federal Reserve Governor Milan pointed out in a speech last December: 'What should have been recorded as an increase in the quantity of services consumed is instead recorded as a price increase.' In the area of software and technology products, Milan, along with Federal Reserve economists Alessandro Barbarino and Anthony M. Diercks, published a paper in May this year analyzing the shortcomings of the current statistical methods, including issues in measuring products like portable storage devices and video games. JPMorgan economist Abiel Reinhart even joked, 'Grand Theft Auto VI might have a chance to influence the U.S. Treasury yield curve.' Although these adjustments are methodologically reasonable and contribute to more accurately reflecting price changes in the long term, their timing is sensitive, sparking external discussions about the independence of statistical practices.