PPI: Health Prices (Except Pharmaceuticals) Stay Tame As Other Prices Rise

BLSSeptember’s Producer Price Index rose 0.3 percent, a significant pick up. However, prices for most health goods and services grew slowly, if at all. Eleven of the 15 prices for health goods and services reported grew slower than the headline PPI. The major exception was prices for pharmaceutical preparations, which increased 1.2 percent, resuming a trend which I had hoped was breaking down. Further, prices of medicinal and botanical chemicals dropped 0.7 percent. So, price increases for pharmaceutical preparations are not coming from the ingredients.

However, over the last twelve months, prices of health goods and services have increased faster than overall PPI, which grew 0.7 percent. The tables are turned: 11 of 15 health categories experienced larger price increases than PPI did. Pharmaceutical preparations continue to stand out dramatically, having grown 8.1 percent. Nursing homes, for which prices rose 2.4 percent, might replace drug makers as the whipping boy for high health prices, but they have a long way to go.

(See Table I below the fold.)


Comments (2)

Trackback URL | Comments RSS Feed

  1. Ron Greiner says:

    YOU sound like Hillary. HillaryClinton.com says, “Protect consumers from unjustified prescription drug price increases from companies that market long-standing, life-saving treatments and face little or no competition. Hillary’s plan includes new enforcement tools that make drug alternatives available and increase competition, broaden emergency access to high-quality treatments from developed countries with strong safety standards, and hold drug companies accountable for unjustified price increases with new penalties.” [Hillary Penalties]

    Hillary also says she will, “Bring down out-of-pocket costs like copays and deductibles.”

    Big Penalties and Little Deductibles – WOW

    Of course nobody is discussing Hillary’s plan hahaha What do you think John, do these deplorable Americans deserve itty-bitty deductibles and co-pays?

  2. Ron Greiner says:

    The pharmaceutical company that distributes the EpiPen is also a Clinton Foundation donor. So Hillary won’t slam penalties on them because of the pay to play rules.

    Read more: http://dailycaller.com/2016/08/24/company-gouging-price-of-epipens-is-a-clinton-foundation-donor-and-partner/#ixzz4NBbdpB7c

    The United States is a nation of laws: badly written and randomly enforced. Frank Zappa.

    Stay deplorable my friends…Vote Trump