Consumer prices just posted their largest one-month jump in nearly 13 years, a fact that might tempt some to conclude that a white-hot U.S. economy is on the brink of runaway inflation.
But a spike in the June 2021 consumer price index reading may, in fact, be little cause for alarm.
That’s because a significant reason for the overall prices increase is thanks to a dizzying rise in one isolated area of the economy: used car prices.
“The headline CPI numbers have shock value, for sure; however, once you realize that a third of the increase is used car prices, the transitory picture becomes more clear,” wrote Jamie Cox, managing partner at Harris Financial Group. “Inflation is rising, but…