Used car prices jumped unexpectedly in January, which suggests that inflation woes are not over for car buyers.
The news has the potential to squash optimistic predictions that inflation is heading downward, as the Federal Reserve continues to hike interest rates.
Used car prices have increasingly become a point of interest for investors and for the Biden administration as a barometer for measuring and easing inflation.
The White House blamed much of the rising inflation rates in the country in the first half of 2022 on the used vehicle market.
Used Cars Are a Leading Inflation Indicator
Used car prices are employed as a leading indicator in the Consumer Price Index (CPI), making up 4.5 percent of the survey….