Inflation microcosm: Used car prices surge

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Consumer price index data released on Wednesday shows that the prices of used vehicles continue to rise. As of December, they were up 37% from the previous year.

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Why this matters: Analysts are viewing used vehicle prices as a microcosm of the broader US inflation story, which includes both a dislocation of global supply chains and increased demand for goods.

  • Prices of used cars and trucks were the second biggest driver in December after sheltering for a monthly increase in consumer prices, accounting for nearly a quarter of the change.

big picture: Global chip shortages have slowed down vehicle assembly lines around the world, causing a wave of buyers in the used car market and a rapid increase in prices.


What will happen next: No relief. a forward gauge Wholesale used car prices that predict the direction of consumer prices bounce again in december, suggesting upward pressure on cars – and inflation more broadly – shows no signs of easing.

go in: Inflation in December at 7%, highest since 1982

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