business
Cost of physician services rises again
■ The 0.5% increase, the most significant since May 2009, is the same rate as overall inflation.
By Victoria Stagg Elliott — Posted March 28, 2011
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After a few flat months, the cost of professional medical services, which includes the work of physicians, has started to increase again.
That is according to a monthly report on the consumer price index issued March 17 by the U.S. Bureau of Labor Statistics.
The cost of professional medical services went up a seasonally adjusted 0.5% in February after not growing at all in January and going up only 0.1% in December 2010. This is the most significant increase since May 2009, when the monthly inflation rate was 0.6%.
The annual inflation rate, which is not seasonally adjusted, for this category was 2.6% in February, but 2.3% in January and 2.7% in December 2010.
The seasonally adjusted February inflation rate was 0.5% for hospital and related services Prices had dropped 0.1% in January but were up 0.7% in December 2010. The annual inflation rate for hospital and related services was 5.8% in February.
Inflation in the economy as a whole for February was a seasonally adjusted 0.5%, the largest increase since June 2009, when it went up by 0.9%.
The overall inflation rate -- driven in large part by oil and food prices -- was slightly higher than analysts predicted. There are some concerns that inflation may escalate to levels that are unhealthy for the economy. However, federal officials say inflation is at appropriate levels.
A survey of 77 economists by Bloomberg indicated that a 0.4% increase was expected.
Inflation was 0.4% in January and December 2010. The annual inflation rate was 2.1% in February, 1.6% in January and 1.5% in December 2010.
