Prescription drug prices drop sharply, marking record-fast decline
U.S. prescription drug prices fell 0.8% in July, continuing a trend of declines for most of the year, according to the consumer price index.
July’s consumer price index revealed prescription drug prices decreased by 0.8%, extending a series of declines that have occurred in five of the last seven months. Compared with the same month a year earlier, prices are down 3.1%. Monthly changes this year ranged from unchanged in January and April to a 1.5% drop in March. Over the past six months, the annualized rate of decline reached 6.6%, the fastest recorded. Prices for over-the-counter medicines fell 0.3% in July after a 0.1% rise in June, leaving them 1.7% lower than a year ago. Renaissance Macro highlighted the unprecedented pace of the reduction.
Why it matters
Lower drug prices can reduce out-of-pocket costs for American consumers.
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