US Economics

US Economics Weekly

13 November, 2015

Medical care inflation due for a rebound

Although the Fed expects to raise interest rates only very gradually next year, we suspect that an acceleration in core inflation, thanks in part to a rebound in medical care inflation, will force the Fed into a more aggressive tightening than the markets currently anticipate. The annual rate of core PCE medical inflation was a modest 0.6% in September, but it should climb back up to around 1.5% next year. This would add almost 0.4% points to annual core PCE inflation, putting it withi

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.