• David Dobrzykowski, PhD

Inflation—the rate of increase in prices averaged over the entire economy— is an average, so it smooths over the variable price evolutions of different items. Some prices have increased much more than average, while others are more “sticky,” having barely moved. Depending on how input and output prices have changed, some companies experience windfall gains, while others are hit with stunning losses. This variability in price changes makes inflation a critical concern in healthcare.
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