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  • Turning Point: CPI Used Vehicles Jumps for First Time since July “Not Seasonally Adjusted,” Tracks Wholesale Price Surge with Two-Month Lag

Turning Point: CPI Used Vehicles Jumps for First Time since July “Not Seasonally Adjusted,” Tracks Wholesale Price Surge with Two-Month Lag

April 14, 2023

by Wolf Richter Wolf Street

The historic plunge in used vehicle retail prices from utterly absurd highs may have ended already.

Used vehicle prices, which spiked ridiculously in 2020 through 2021, were a big player in the surge of inflation during that time. Then, starting in early 2022, used vehicle prices began to drop, and the CPI for used vehicles plunged, and it helped push down overall CPI and “core” CPI.

But now, after these historic distortions, there has been a seemingly complete disconnect between used vehicle wholesale prices, which have been surging for months, and used-vehicle CPI, which has continued to fall, including yesterday’s seasonally adjusted CPI release for March. Or so it seems.