Inflation: Car insurance is the culprit. So are bad drivers.
SlateWell, if you were hoping inflation would shrink down to the Federal Reserve’s preferred threshold of 2 percent, you are out of luck. But, according to the Bureau of Labor Statistics’ latest Consumer Price Index report, overall year-over-year price increases amounted to 3.5 percent in March, marking a small uptick from February’s measurement. When it comes to the Department of Labor’s inflation calculations, motor insurance hardly carries much weight compared with more common goods like food and energy. When inflation began its steady climb in mid-2021, year-over-year car insurance increases peaked at a surprising 16.9 percent—but those were far outstripped by mammoth price hikes for fossil fuels and used vehicles, which saw surges in the neighborhood of 40 percent. The inflationary summit in the months following Russia’s 2022 invasion of Ukraine was driven by resultant shocks in agriculture and energy, while motor insurance saw much less of an increase.
History of this topic
Car insurance premiums start to FALL - but are still up 48% in two years
Daily Mail
Surging auto insurance rates squeeze drivers, fuel inflation
LA TimesSurging auto insurance rates squeeze drivers, fuel inflation
Associated PressSurging auto insurance rates squeeze drivers, fuel inflation
Associated PressThe annual rate of inflation remained steady in February, at 3.4 per cent
ABC
'Everything is rising at a scary rate': Why car and home insurance costs are surging
NPRLower auto prices are giving Americans a break after years of inflation
Associated Press
Lower auto prices are finally giving Americans a break after years of inflationary increases
LA Times
Will the cost of car insurance keep rising in 2024?
Daily MailMonthly inflation lifts to 5.2 per cent in August, as rising fuel, food and insurance prices hit households again
ABC
Record spike in insurance firms ripping off drivers over value of their car
The Independent
Some good news! Inflation cools down to 3% in reaching distance of Fed's 2% target
Daily MailInflation falls from peak, but still more than twice the top of the Reserve Bank's target for interest rates
ABC)
US inflation eases to lowest level in nearly two years
Firstpost
US sees highest increase in inflation in 40 years fueled by 7.5% surge in consumer prices
India Today
US inflation jumped 7.5% in the past year, a 40-year high
The Independent
Annual Inflation Back to Highest Increase in 13 Years After 0.4% Rise in Consumer Prices Last Month
News 18
Inflation REMAINS at a 13-year high at 5.4%
Daily Mail
Inflation: Used cars, travel and furniture are just some of many things that are getting more expensive
CNN
Consumer prices jump 0.6% in March, biggest gain since 2012
Associated Press
Inflation watch: US consumer prices post biggest jump in 8 years
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