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October 1997, Vol. 120, No.
10
Gregory G. Kelly
Economist, Division of Industrial Prices and
Price Indexes, Office of Prices and Living Conditions, Bureau of
Labor Statistics
Frequent new product introductions make developing price indexes for the prescription pharmaceuticals industry challenging. BLS updates its methodology to capture new products and make its sample more representative. This article describes the industry and features that make it unique, in addition to discussing the problems confronting analysts developing price indexes for the industry.
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