The Consumer Price Index rose 0.3 percent
in December. Medical prices rose only 0.2 percent. This is the fourth
month in a row we have enjoyed medical price relief. Even prices of
prescription drugs rose by only 0.2 percent. Prices of health insurance even dropped
a smidgeon!
Prices for medical care commodities rose
the most, by 0.6 percent, followed closely hospital services (0.3) percent).
Over the last 12 months, however, medical
prices have increased over twice as fast as non-medical prices: 1.9 percent
versus 4.1 percent. Price changes for medical care contributed 16 percent of
the overall increase in CPI.
Many observers of medical prices decline
to differentiate between nominal and real inflation. Because CPI is has been
low until recently, even relatively moderate nominal price hikes for medical
care are actually substantial real price hikes. More than six years after the
Affordable Care Act was passed, consumers have not seen relief from high
medical prices, which have increased over twice as much as the CPI less medical
care since March 2010, the month President Obama signed the law.
(See Figure I and Table I below the fold.)
No comments:
Post a Comment