Due to inflation, the purchase cost of consumers is getting higher and higher over time. The PCE price index is a measure of inflation. Figure 1 shows that since 2000, the PCE index in the United States has risen by 40%, equivalent to an annual inflation rate of about 1.8%. The price index can also be used to calculate specific expenditure categories such as food, energy and health. The blue line in the index shows the change in health care expenditure. < / P > < p > we can see how fast the price of medical expenditure increases relative to the general consumption expenditure: the general consumption expenditure has increased by 40% in 19 years, while the medical expenditure only took 7 years – the inflation rate of medical expenditure is as high as 3.7% per year.