Inflation is one of the most common terms in economics, finance, and government. It is a very important word in our society and affects everyone. Inflation is defined as the measure of the degree to which goods and services increase in cost over a specified period. The common time frame used to describe or assess the impact of inflation is one year. It is used to measure and understand how much the cost of living, particularly basic needs such as housing, food and utilities have increased over a definite timeline. The economic and financial status of a country is often a function of inflation. In 1974, President Gerald Ford described inflation as the number one enemy in the United States. Till date, inflation has remained an economic thorn globally, plunging countries into long periods of instability. The consequences are dire and causes a ripple effect in all areas of the society including health and healthcare.

These days, the impact of inflation is felt everywhere including grocery stores, gas stations, and pharmacies. For the farming industry, it is the high cost of seed and farming equipment; For the construction industry, it is supply chain backlog and demand for higher wages; and for healthcare industry, it is increased cost of products, services, and labour. In the US healthcare industry more specifically, there has been a decline in profits for providers. Additionally, pressures and rising costs due to inflation continue to negatively affect healthcare projects, patients, and providers. The consequences of inflation in healthcare can be dangerous. When healthcare becomes unaffordable or when people must pay more for services, they are more likely to stay home and avoid going to the hospital. This can lead to severity of medical conditions or even death.

The relationship between inflation and health are complex and extensive. The major challenge healthcare systems face due to inflation is the rising cost of care. In a recent study sampling random physicians at the American Medical Association, no issue came close to high cost of health services, as the major concern for the impact of inflation in healthcare. Governments have continued to find ways to subsidize the cost of health services and reduce the impact of inflation while maintaining the quality of health care provided. In their report, John Virts and George Wilson showed that inflation contributes to rising health care costs and predicted the potential outcome of governments regulating health care prices.

For Nigeria, the healthcare inflation rates increased by about 17% in October 2022 according to the report by the National Bureau of Statistics (NBS). This is the highest recorded rate in the last thirteen years and is worsened by the persistent public health challenges and weak health system.
Like most countries, everything seems to be getting more expensive, including healthcare. This all-time inflation rates are increased by a complex range of factors including supply chain dynamics, border constraints, public procurement issues, public and private insurance, producers, resellers, and health companies. These factors interact to cause delays in delivery and shortages of medical supplies. They also affect pharmaceutical giants and producers of medical devices and are worsened by the past pandemic and global tensions caused by the Russian-Uranian war.

Given the constantly high demand for health products, low supplies translate to inflation- increasing prices. In Canada, Health Canada regulates the prices of health care products such as medical masks, sample bottles, ventilators, and other essential healthcare goods for the most part. Currently, these products have been in shortage of supply- a recent survey of Canadian producers showed that about 90% of businesses reported significant interruption in business and have increased prices of healthcare products to make up for these disruptions.

There is no perfect solution to inflation; in fact, some economists believe that it is inevitable. Although the recent pandemic resulted in worsened rates of inflation, things are likely to get better with the new stability in the economic environment. According to a report by Rosalie Wyonch- a Senior Policy Analyst at the C.D. Howe Institute, safely recycling possible supplies and better liaison between the government and suppliers will cushion short term disruptions and reduce effects on healthcare consumers.