by Wolf Richter
Wolf Street
Will CPI inflation back off as used-vehicle prices partially unwind? Ha, here come the massive CPI measures for rent that have begun to soar. Inflation Whac-A-Mole.
This has been developing in the used vehicle market since November: After prices spiked into the stratosphere, more potential buyers became reluctant to overpay ridiculous amounts for a used vehicle, and sales began to dip, and the underlying dynamics in the wholesale market began to weaken in November and weakened further in December, and then in January wholesale prices were flat for the first time since August seasonally adjusted. And not seasonally adjusted, prices fell.