The inflation you don’t see
Rick Newman:
Services inflation is harder to spot than increases in
the cost of items on store shelves, where the price is listed on or near the
product. Unlike staples, some services, such as medical care or auto repair,
are infrequent expenses where the price isn’t clearly marked in the first
place. Insurance is typically repriced only once or twice per year, and
consumers don’t always remember what they paid last time.
But families spend nearly twice as much on services as
they do on goods, so this inflation definitely bites. Housing is largely a
service, and that’s most families’ biggest expense. Care for children and
elderly family members is another costly service for some families. Just about
everybody knows the sting of medical expenses, especially those not covered by
insurance.