Fluctuating energy, food and housing prices are likelier to move the needle on inflation in the near term than any spending plan Congress passes, experts say.
Although the new bill doesn't take nearly as targeted of an approach to fighting inflation, it does aim to reduce the prices consumers pay in one key area: health care."Health-care costs are an important driver of inflation in this country," says Adams, adding that the U.S. is unique among developed economies in the amount it spends on health care compared to the outcomes its citizens receive.
"From a 35,000-foot view, controlling health-care cost increases can bring down inflation over the next three to five years," he says. In addition to letting Medicare negotiate drug prices on behalf of consumers, the bill limits out-of-pocket prescription costs for Medicare beneficiaries to $2,000 per year. And if drug companies raise prices faster than inflation, they'll owe rebates to Medicare — presumably a deterrent to the sort of price hikes that can cripple the budgets of older Americans.
Still, opponents of the bill say that authorizing a huge spending bill will add to inflation rather than combatting it.told CNBC's Squawk Box on Monday."This is going to be very inflationary almost immediately because we're printing billions of dollars."
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