Insights Inflation Checkpoint: A Deep Dive Into Healthcare Services Inflation

Elise Mordos

Sep 26, 2019

Highlights

  • Healthcare spending is a sizable portion of household budgets, and costs — including insurance premiums, deductibles, and copayments — have been steadily rising.
  • Medical services costs are a key component of the Fed’s preferred inflation measure, but because they are acyclical, they matter less from a monetary policy standpoint.
  • In Bessemer’s price index, healthcare represents a higher weighting than the base index, and this has been an upward driver of our measure in recent years.

 

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Elise Mordos
Investment Strategies Analyst
Elise is responsible for conducting macroeconomic research and financial market analysis, and provides asset allocation and strategy recommendations to help optimize client portfolios.