Friday, September 11, 2020

Biggest Jump In Used Car/Truck Prices Since 1969

From Bloomberg, Economics, "U.S. Inflation Quickened in August on Sharp Gain in Used Cars" by Reade Pickert:
U.S. inflation quickened in August, driven by the sharpest monthly gain in used-vehicle costs since 1969 and consistent with a gradual pickup in prices as the economy recovers from the pandemic-induced downturn.
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Excluding volatile food and fuel costs, the so-called core CPI -- viewed by policy makers as a more reliable gauge of price trends -- also increased 0.4% from the prior month after a 0.6% jump in July that was the largest in almost three decades. A 5.4% surge in the cost of used cars and trucks accounted for more than 40% of the gain in the core index. On an annual basis, core inflation measured 1.7% following 1.6% in July.[Emphasis added.]

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