3 ms·
I don’t know in the sense that I have exhaustively researched the topic in exacting detail, but I believe it is mostly supply related because of a combination o
by wbsss4412 5y ago
I don’t know in the sense that I have exhaustively researched the topic in exacting detail, but I believe it is mostly supply related because of a combination of factors:
1. Global supply chain disruptions are well documented, multiple automakers have had to shutdown factories for lack of parts.
2. Cars prices are increasing much more rapidly than the overall inflation rate. (I believe another comment in this thread said ~40% for used vehicles)
3. Total vehicle sales are still below their pre pandemic levels.
I never said that the money supply isn’t contributing to inflation. But it is quite clear that there is a significant supply problem when it comes to cars.
- flavius29663 5y ago> Cars prices are increasing much more rapidly than the overall inflation rate There will always be items that increase in price more than the average. Are you proposing to eliminate all the outliers in each report? In the end, people still need to buy cars, which are more expensive, so the inflation rate should reflect that.
- wbsss4412 5y agoThe argument wasn’t that it should be eliminated from the inflation rate, the discussion was about what was causing car prices to be inflated. > Car prices are being driven by supply chain issues more so than a surplus of dollars.