Free Republic

Used car prices in the US continue to surge due to both the country’s economic recovery and an ongoing supply crunch. There are two components to watch in the core inflation report due next week. First is, and most importantly, are used car prices and second is the rent of shelter. Core inflation in April saw a more significant contribution to used car prices pushing inflation upwards of 2% YoY mainly because prices of used vehicles on the month jumped 21% YoY. For those who haven’t seen what is going on in the used car space, here is a chart...