Inflation rates for medical care are expected to remain higher than the CPI-U for years to come.

The Federal Open Market Committee expected in June that the CPI-U would likely hit 2% per year again in 2024. The Centers for Medicare & Medicaid Services, Office of the Actuary forecasted higher than 2% inflation rates through 2030. Jerome Powell spoke at Jackson Hole today. “Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy. Committee participants’ most recent individual projections from the June SEP showed the median federal funds rate running slightly below 4 percent through the end of 2023. Participants will update their projections at the September meeting.” We’ll see if the expectation for 2024 changes?!