Real-time data revisions and the PCE measure of inflation

► Data revisions in the Personal Consumption Expenditure are examined in this paper. ► Data revisions can be very useful for policy analysis of critical economic events. ► They are generally very small in magnitude and tend to get lost in aggregation. ► Flexible models with local time-varying estimators can utilize the data revisions. ► This paper presents two such models: the global and local nonparametric models.