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21 Apr 2014
US inflation watch, noting medical prints - RBS
FXStreet (Guatemala) - Strategists at RBS noted that the April and May medical care prints in the CPI in 2013 were weak.
Key Quotes:
“The April and May medical care prints in the CPI in 2013 were weak, due largely to Medicare payment reductions and lower reimbursements by private insurers”.
“Those weak readings from a year ago will present an easy hurdle for the year-over-year growth rate in the medical care index, which could climb from 2.2% in March to 2.9% by May”.
“Just that increase alone would add about 0.07 percentage points to the year-over-year core CPI rate, pushing it from the current 1.66% to 1.73%, or close to a 1.8% rate in the next two months”.
“Thus far this year, the rise in the medical care index mirrors the pace seen in prior years”.
Key Quotes:
“The April and May medical care prints in the CPI in 2013 were weak, due largely to Medicare payment reductions and lower reimbursements by private insurers”.
“Those weak readings from a year ago will present an easy hurdle for the year-over-year growth rate in the medical care index, which could climb from 2.2% in March to 2.9% by May”.
“Just that increase alone would add about 0.07 percentage points to the year-over-year core CPI rate, pushing it from the current 1.66% to 1.73%, or close to a 1.8% rate in the next two months”.
“Thus far this year, the rise in the medical care index mirrors the pace seen in prior years”.