Health care inflation lowest in nearly 50 years

AHA News Now

Prices for personal consumption expenditures on health care goods and services rose just 1.1% over the12 months ending in May, the slowest rate in nearly 50 years, according to a blog post yesterday by Alan Krueger, chairman of the president’s Council of Economic Advisers. “The slowdown in PCE health care inflation has been widespread, with important contributions from two large components: hospital and nursing home services (which comprise 42% of total health care expenditures) and outpatient services (which comprise 34% of total health care expenditures),” he wrote. “…In sum, data from across the economy – covering consumers, government and private employers – point to the same conclusion: health care cost growth has slowed. A mounting body of research finds that structural changes are driving a substantial part of the recent slowdown in health care cost growth, suggesting that the trend may persist.”

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