by Wolf Richter
Wolf Street
Already putting pressure on CPI inflation. Now comes tax-refund season.
Inflation pressures are rebuilding in used vehicles. Prices of used vehicles sold at auctions where franchised and independent dealers replenish their inventories rose by 0.4% in January from December, seasonally adjusted (red line), and by 0.6% not seasonally adjusted (blue line), according to the Used Vehicle Value Index by Manheim, the largest auto auction house in the US. The index is adjusted for changes in mix and mileage.
Since the low point in June, prices have risen by 4.9%, seasonally adjusted, and are at the highest level since October 2023. “While it’s not yet spring, wholesale values increased more than we usually see in the month of January, with particular strength at the end of the month,” Manheim said.