Out-of-Control Inflation in the United States

Ed Yardeni Dr. Ed's Blog: Global & Local Inflation

If you are looking for out-of-control inflation in the US, look no further than the college and hospital next door. The CPI data show that college tuition and fees have increased 1,036% since January 1979 vs. 546% for Medical Care Goods & Services vs. 238% for the overall CPI. In other words, college costs have more than quadrupled relative to the CPI over this period, while Medical Care has more than doubled relative to the CPI.

Yardeni doesn't mention it, but it's not an accident that both these sectors are heavily funded by the government. Where government stays away, smartphones, flat screen televisions and computers, prices fall.