The Most Important Economic Chart in the World

Here’s an update to the Most Important Economic Chart in the World.

The chart below shows the Medical Care portion of the CPI divided by core CPI. Healthcare costs have outrun the cost of everything else for decades. Suddenly, that trend has come to an end. Over the last year, healthcare costs have actually trailed broader consumer prices.

fredgraph06182013a

If this trend keeps up, the impact of slower healthcare inflation will have far-reaching effects. Here’s a closer look at the same chart since 2011:

fredgraph06182013b

Posted by on June 18th, 2013 at 10:54 am


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