Data: U.S. Bureau of Labor Statistics via FRED; Chart: Axios Visuals
Consumer Price Index data released Wednesday showed used-vehicle prices continue to surge. As of December, they were up 37% compared to the previous year.
Why it matters: Analysts have been watching used-vehicle prices as a microcosm of the broader U.S. inflation story, encompassing both the disarray of global supply chains and the surge in demand for goods.
Prices of used cars and trucks were the second-biggest driver — after shelter — of the monthly increase in consumer prices in December, responsible for almost a quarter of the change.
The big picture: The global chip shortage has slowed vehicle assembly lines worldwide, driving a wave of buyers to the used-car market and prices sharply higher.
What's next: Not relief. A forward-looking gauge of wholesale used-car prices that tends to predict the direction of consumer prices surged yet again in December, suggesting upward pressure on cars — and inflation more broadly — shows no signs of abating.