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Health Insurance Is About to Boost U.S. Inflation

After months of relief, inflation statistics may look a bit higher this week, as the BLS is rolling out changes in how it tabulates health insurance costs, introducing a new methodology designed to smooth out volatility and reduce time lags.

By Molly Smith | November 13, 2023 at 09:54 AM

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.

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