FIGURES RELEASED on July 13th by the Bureau of Labour Statistics showed that annual consumer-price inflation in America had reached a higher-than-expected 5.4% in June, and that prices had climbed by 0.9% in that month alone. This confirmed a trend. In April inflation hit 4.2% year on year, the highest rate since 2008; it rose again, to 5%, in May.
About one-third of June’s overall month-on-month rise stemmed from the appreciating value of second-hand cars. According to the BLS, the prices of used cars and trucks rose by 45% over the past year, the largest 12-month increase ever reported. The latest index of second-hand values published by Manheim, America’s largest used-car auction business, suggests that prices of pick-up trucks have risen by an astonishing 50% in one year. Ageing usually quickly destroys a vehicle’s value; not now.
Used-car prices will not accelerate forever. Indeed, the Manheim index of wholesale prices dropped slightly between June and July . That may be a sign of things to come. The supply of new cars will recover once the chip shortage has abated, easing demand for older ones. For now, though, the brakes are off.
Used car prices are the surest way to evaluate inflation everywhere in the world.If car prices increase with age,it means we have double-digit inflation.
And in Turkey. Prices of Cars remained from the Stone Age have doubled or tripled
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