A change in how the government estimates health insurance costs is expected to give a slight boost to a popular U.S. inflation measure, reversing a trend that had been providing some relief in recent months.

Beginning with Tuesday's release of the October consumer price index (CPI), the Bureau of Labor Statistics (BLS) will roll out a few changes to how it tabulates the category. In addition to a routine change in source data, the new methodology will aim to smooth some of the volatility and reduce time lags in the index.

After being a reliable drag on overall inflation for the past year, the new computation is widely anticipated to put upward pressure on the headline CPI, at least in the near term. It'll also boost a narrower subset of services inflation that excludes energy and housing.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.