Upstream Pressure

Prescription Drug CPI

Year-over-year change in prescription drug prices

What is the current Prescription Drug CPI reading?

PRESCRIPTION DRUG CPI
-3.06%
year-over-year change in prescription drug prices as of July 2026

Prescription Drug CPI: -3.06% as of 2026-07. Source: U.S. Bureau of Labor Statistics (CUSR0000SEMF01).

Measurement basis: Year-over-year percent change computed from the seasonally adjusted BLS Prescription Drug CPI (CUSR0000SEMF01); seasonally adjusted values may be revised

Prescription drug prices are running at -3.06% year-over-year — a CPI category where Medicare negotiation and generic substitution both show up in the index.

Drug prices rarely fall. Over thirty years of this series the year-over-year change has been positive far more often than not, peaking at 7.1% in October 2016. A negative print is the exception, not the pattern.

BLS data shows the year-over-year change at -3.06% as of July 2026. The print reflects two regulatory levers running at the same time. Medicare negotiation on a widening list of drugs is feeding through to the price indexes. Generic substitution on several high-volume brand franchises is arriving in parallel.

Where the index is falling, the relief is concentrated in drugs coming off patent and in the categories Medicare is negotiating. Patients on novel biologics, weight-loss drugs, or specialty cancer therapies face price curves that look nothing like the headline number.

The broader context is sobering. Medical Care CPI covers the whole medical basket, and doctor visits, hospital services and insurance premiums are the lines that dominate it. Drugs are the smallest part of the medical budget for most households who are not on a specialty therapy.

Source: U.S. Bureau of Labor Statistics · Source data ↗ · Latest: 2026-07

Explore Further

How has Prescription Drug CPI changed over time?

CSV Chart Card
Prescription drugs are one of the few CPI categories in outright deflation
Prescription drug component of the Consumer Price Index, year-over-year percentage change
Prescription Drug CPI
Historical data
Monthly · U.S. Bureau of Labor Statistics (CUSR0000SEMF01)
Period Value YoY Change
Jul 2026 -3.06% -3.94 pp
Jun 2026 -2.5% -3.7 pp
May 2026 -2.02% -2.83 pp
Apr 2026 -0.52% -2.8 pp
Mar 2026 -0.18% -2.33 pp
Feb 2026 -0.7% -5.28 pp
Jan 2026 -0.53% -4.98 pp
Dec 2025 1.95% +0.85 pp
Nov 2025 1.86% +1.16 pp
Sep 2025 1.71% -0.47 pp
Aug 2025 0.88% -1.09 pp
Jul 2025 0.88% -1.64 pp

Frequently Asked Questions

What is Prescription Drug CPI?

Year-over-year change in prescription drug prices

Why does Prescription Drug CPI matter for financial distress?

Prescription Drug CPI is one of the indicators tracked by the American Distress Index (ADI), which measures five dimensions of U.S. household financial distress: Delinquency, Default & Legal, Debt Burden, Labor, and Safety Net & Buffer. Changes in this indicator contribute to the overall distress picture.

Where does the Prescription Drug CPI data come from?

This data comes from U.S. Bureau of Labor Statistics (CUSR0000SEMF01). More information: https://data.bls.gov/timeseries/CUSR0000SEMF01. The American Distress Index updates this indicator monthly.

Ross Kilburn
Written by

Ross Kilburn, Founder

American Default Research · Seattle, Washington

Two decades working directly with financially distressed American households — from property preservation in 2003, to negotiating over 1,000 short sales during the Great Recession, to foreclosure defense marketing today. Author, The Ark Law Group Complete Guide to Short Sales (Auroch Press, 2013). Twice named to Puget Sound Business Journal Fast 50 for Ark Law Group. B.A., University of California, Berkeley, 1992. Founded American Default Research in 2026 to fill a gap in public data that had been empty since 2013.

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Why does Prescription Drug CPI matter?

Prescription Drug CPI is one of 98 live indicators tracked by American Default Research. The methodology page explains sources, update cadence, and how the index uses its published inputs.
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