A measure of underlying U.S. inflation accelerated by more than forecast to a one-year high in August, signaling inflation was already firming ahead of fresh tariffs on Chinese goods this month that may push prices higher for Americans.
The core consumer price index, which excludes food and energy, rose 0.3% from the prior month and was up 2.4% from a year earlier, a Labor Department report showed Thursday. That exceeded the median estimates.
Inflation may pick up further this month following the latest escalation in the tariff battle, as President Donald Trump’s levies on a range of consumer goods from China took effect Sept. 1. Late Wednesday, Trump delayed the next round of tariff increases by two weeks to Oct. 15 as the U.S. and China try to resume face-to-face talks.
Employer healthcare costs in the U.S. are rising 6.5% in 2020 or nearly double the rate of general inflation for yet another year amid the rising costs of specialty pharmaceuticals and ongoing chronic conditions, according to Aon, a global professional services firm and risk manager.
The rise in employer medical plan costs will outpace general inflation rising 2.4% this year and projected at 2.7% in 2020, according to Aon’s “Global Medical Trend Rates” report, which looks at the U.S. as well as medical costs globally. U.S. employer medical costs rose 6.5% this year as well, Aon said.