Thursday, July 14, 2016

Producer Price Index: Health Prices Remain Tame

For the second month in a row, prices of pharmaceutical preparations did not increase at all in the PPI (Table I).

Prices for final demand goods (less food and energy), and prices for all final demand health services were either flat or down in June. Similarly, price changes of health services for final demand were all lower than price changes for final demand services overall. The same was true for both goods and services for intermediate demand.

For the last 12 months, prices of health goods and services (especially pharmaceutical preparations) have increased significantly more than prices of other goods and services, but the trend of disproportionately high health price increases might be breaking down.

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