Steel prices hit lowest level in a year
After hitting record highs last year, U.S. steel prices are now rolling over fast, a possible sign of light at the end of the inflation tunnel.
Why it matters: Prices for commodities — which are key contributors to the current inflationary surge — typically filter into consumer prices over time.
The big picture: The decline in steel prices is a good signal that lower car prices could be in the cards later this year, since much of the hot-rolled steel coils produced in the U.S. are stamped into auto bodies.
- That could have huge implications for inflation (and offset some of those higher rents Emily wrote about). New and used vehicle prices were the second-largest contributor to January's 7.5% annual surge in the Consumer Price Index.
By the numbers: Benchmark futures prices for U.S. hot-rolled coils of steel hit $1,135 on Friday, the lowest level in a year. They're down more than 40% from their peak of nearly $2,000 in August.
Go deeper: Inflation hits fresh 40-year high