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Slowing Health Costs Thwart Fed's Inflationary Medicine
Bloomberg Link to more items from this source
Apr. 9, 2014
"A welcome relief from rising health-care costs for U.S. consumers is being less warmly received at the Federal Reserve. The slowdown is frustrating the efforts of Chair Janet Yellen and her colleagues to lift inflation out of the doldrums, suggesting they will need to press on with record-low interest rates.... The cost of health-care services rose just 0.8 percent in February from a year earlier, compared with an average 2.6 percent pace in the prior 10 years. Prices of medical goods such as prescription drugs rose 2.2 percent, down from the 10-year average of 2.7 percent."

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