After last week’s hot CPI print, the great inflation debate continues to dominate headlines. The Biden administration and Federal Reserve members have been insisting inflation is transitory. But new, used car data shows prices continue to soar, suggesting inflation is anything but transitory.
Anyone shopping for a used car since the virus pandemic began has been hit with extraordinarily high prices as snarled supply chains and chip shortages crimp new car output, pushing consumers onto secondary markets.
The Manheim Index, the most recognized wholesale used-vehicle price index by financial and economic analysts, shows that used car prices rose 4.9% in the first 15 days of November compared to October. The overall index has jumped 44.9% from November 2020.