The unprecedented rise in used car prices was the biggest contributor to the unexpected surge in US inflation last month.
Costs for previously owned sedans, pickups and SUVs surged 10% in April, according to the Bureau of Labor Statistics. This is the fastest rise in history, dating back to 1953. The consumer price index was four times the level estimated by economists.
The number of new cars made inside is small Lack of critical semiconductorsBoth retail consumers and car rental companies went to the used car market to get the wheels they needed. As a result, wholesale prices rose 54% year-on-year at Mannheim, the country’s largest vehicle auction house.
Most analysts say that rising car prices, like the surge in inflation as a whole, are likely to be temporary as production increases and demand subsides. Car sales surged amid the pandemic road trip boom and hesitation in using public transport. This trend may fade in the coming months.
“This won’t last forever,” said Maryann Keller, an independent automotive industry consultant in Stamford, Connecticut.
https://njcar.org/automotive-news/dealer-headlines/record-rise-in-used-car-prices-is-key-culprit-in-inflation-jump/ Record rises in used car prices are a major cause of inflation surges