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Healthcare Costs and Inflation Dynamics
This chapter examines the anticipated shifts in healthcare costs and their implications for inflation, particularly focusing on the role of health insurance in the Consumer Price Index (CPI). It discusses the effects of pandemic-driven changes in healthcare utilization on insurers' earnings and forecasts a significant reduction in health insurance inflation. Additionally, the chapter highlights the complexities of how inflation metrics are calculated and the challenges faced by the Bureau of Labor Statistics in accurately reflecting these changes.