Chicago – January 11, 2023
Even as inflation in the United States has slowed in recent months, an unexpected culprit has emerged as a stumbling block to further reducing consumer prices: vehicle insurance.
Consumer prices increased 3.4% in December compared to 2022, according to the Labor Department’s monthly Consumer Price Index, exceeding the 3.2% forecast by economists polled by Reuters and rising from 3.1% in November.
The greatest annual increase in car insurance in over half a century made a significant upward contribution that is unlikely to fade anytime soon.
According to government data, motor vehicle insurance premiums soared by 20.3% in December compared to the previous year, the highest increase since the mid-1970s.
Furthermore, auto insurance, an expense category rarely impacting overall inflation, accounted for 15% of headline price increases in the fourth quarter of 2023.
