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The Mystery of Health Care’s Missing Inflation

Photographer: FRANCK FIFE/AFP

Hi, it’s John in New York. I cover health care in the US, with a particular focus on why it costs so much and why the country often doesn’t get what it pays for. Today, we’ll look at inflation in the health-care industry. But first...

Inflation is surging in the US, with prices rising at the fastest pace in 40 years and the Fed hiking rates to tamp it down. In normal times, price increases for medical care outpace overall inflation. Curiously, that’s not happening now: Medical prices are lagging behind overall inflation, not leading it as they typically do.