Health Inflation in india
Health Inflation in India Update
Latest Release
May, 2025
Current
4.25%
Previous
4.26%
- Health Inflation: The year-on-year inflation rate for the health component of the Consumer Price Index (CPI) for April 2025 is 4.25% (provisional), remaining nearly unchanged compared to the previous month.
- Previous Month: In March 2025, health inflation was 4.26% (final).
- Indication: The stability in health inflation suggests persistent upward pressure on healthcare costs, with no significant relief for consumers compared to last month.
- Reasons for Change: The consistently high rate is attributed to ongoing elevated prices of medical services, hospital charges, and essential medicines, reflecting both demand and supply-side pressures in the healthcare sector.
- Impact on People: Elevated health inflation continues to increase out-of-pocket expenses for households, especially impacting low- and middle-income groups, and may limit access to affordable healthcare.
- Impact on Market: Sustained health inflation may prompt policymakers to closely monitor healthcare cost drivers. It also affects sectors such as pharmaceuticals and health insurance, potentially leading to adjustments in pricing and coverage.
Above mentioned rate is combined health inflation for both rural and urban sectors.
Please Note: Data published in May represents the inflation rate for April. This is because it is calculated and reported for the previous month after analyzing price changes.
Health Inflation in India Chart
India Health Inflation Chart - Historical & Current Trends. Analyze Health Inflation Rate Changes Over Time
Health Inflation overview
Health inflation measures the rise in the cost of healthcare services and medical products over time. It is part of the broader Consumer Price Index (CPI), which tracks how much prices are rising across various sectors like food, housing, clothing, and health.
Health inflation refers to the rising costs associated with things like doctor consultation fees, hospital services, medicines, medical equipment, health insurance premiums, and diagnostic tests such as X-rays and blood tests.
Related Inflation and Price Indicators
- CPI Inflation
- WPI Inflation
- Education Inflation
- CPI Housing Utilities
- Food Inflation
- Health Inflation
- WPI Food Index
- WPI Fuel & Power
- WPI Manufacturing
- Inflation Expectations
Important
If you notice any discrepancies in the data or find any inaccuracies, please let us know. We will review and correct them as soon as possible.
Other Indicators
GDP & Economic Growth Indicator
- GDP
- Full Year GDP Growth
- GDP per Capita
- GDP from Agriculture
- GDP from Construction
FAQs
What is health inflation?
Health inflation is defined as the annual rise in the costs associated with healthcare products and services, as indicated by the health section of the Consumer Price Index (CPI). It encompasses expenses related to medical treatment, hospital fees, pharmaceutical products, and healthcare supplies.
How is health inflation measured in India?
In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures health inflation within its Consumer Price Index (CPI) calculations, which track the changes in healthcare expenses for both rural and urban areas. This includes costs related to medicines and medical products, outpatient services, hospitalizations, and diagnostic tests, as well as health insurance, where applicable. The CPI uses the base year of 2012, which is set at 100, and the health inflation rate is expressed as the percentage change from the previous year.
Why is health inflation important?
Health inflation is significant as it directly impacts household healthcare budgets by increasing the amount families must spend on medical needs. Additionally, it may reduce the value of health insurance coverage, making it less effective in providing necessary protection against medical expenses. Health inflation also plays a critical role in shaping policy decisions concerning health subsidies and pricing, as policymakers aim to address these rising costs.
How does health inflation differ from general inflation?
General inflation accounts for a wide range of categories including food, fuel, and housing. However, health inflation is distinct in that it is specific to the medical sector, concentrating solely on medical expenses. Health inflation can be elevated even during periods when general inflation is relatively low.