Underlying economic data show drug prices are not soaring

While headlines tend to focus on high drug prices, particularly when price gouging is involved, the underlying economic data suggest prices in the pharmaceutical sector are under increasing pressure.

In the USA, MarketWatch reports that the labor department’s consumer price report for the 12 months up to the end of September show growth in medical care commodities slowing to 1%, down from 2.4%.

The rise in prescription drug prices slowed from 2.7% to 1.4% and generic drug costs fell by 0.6% over the period.