Inflation cools sharply in June, good news for consumers and the Fed.

[Visbek]

It's not just houses and cars.
Houses are a separate issue because we aren't building the supply, and people are staying in their homes because of lower rates.

Cars on the other hand I think was a covid thing but with some market manipulation. Prices aren't coming down.

Other things aren't coming down in prices either.

Sigh

First of all, almost everyone ignores how prices in many categories cratered right after the pandemic started. E.g. clothing prices fell 13% in just a few months in early 2020. Energy and yes, even medical costs briefly fell. Part of inflation was just catching up.

In case you missed it, not everyone owns their home. Many who do have fixed mortgages, thus fixed costs. Lots of other people rent.

There was no "market manipulation" with cars. Auto manufacturers couldn't get parts, and were somewhat constrained on how much they could raise the price. Used cars were more available and less constrained, so the prices went up. And yes, the price of used cars has dropped. Just this week, an independent research agency published a report that wholesale prices for used cars fell 10.3% YoY in June. (BLS has it only at a 5% drop btw.) Don't be too shocked if used car companies like Carvana declare bankruptcy this year.

Wholesale used car prices decline to levels not seen since 2020

Compared to this time last year, wholesale used vehicle prices dropped by 10.3%.

www.newsnationnow.com

And yes, inflation is cooling. That doesn't mean that "prices are coming down" -- that's deflation, which again is disastrous for an economy (see post above). But it is a fact that prices in some categories have fallen, specifically energy and yes, used cars.

Consumer Price Index Summary - 2025 M08 Results

www.bls.gov

 

[Gimmesometruth]

It's not just houses and cars.
Houses are a separate issue because we aren't building the supply, and people are staying in their homes because of lower rates.

Cars on the other hand I think was a covid thing but with some market manipulation. Prices aren't coming down.

Other things aren't coming down in prices either.

The 2 main drivers of inflation during the period in question was used cars and housing, both rental and residential prices.

 

[Plasmaball]

Sigh

First of all, almost everyone ignores how prices in many categories cratered right after the pandemic started. E.g. clothing prices fell 13% in just a few months in early 2020. Energy and yes, even medical costs briefly fell. Part of inflation was just catching up.

Where some fell other rose. Welcome to free markets. Hand sanitizer spiked. Wipes and cleaning did as well.

In case you missed it, not everyone owns their home. Many who do have fixed mortgages, thus fixed costs. Lots of other people rent.

Why would I miss that? I'm literally staying what I've read about the market since I was looking for a home.

we have had a supply issue since bush-obama with building houses. People are leacing their homes due to lower rates that they were locked into.why would you sell your house ( majority of people) if you have a 2.3% rate?
I know the prices pre and post covid. Everything doubled in value.

rent has gone up. Even where i live. Forcing people to pay more because its tied back to inflation

There was no "market manipulation" with cars. Auto manufacturers couldn't get parts, and were somewhat constrained on how much they could raise the price. Used cars were more available and less constrained, so the prices went up. And yes, the price of used cars has dropped. Just this week, an independent research agency published a report that wholesale prices for used cars fell 10.3% YoY in June. (BLS has it only at a 5% drop btw.) Don't be too shocked if used car companies like Carvana declare bankruptcy this year.

yeah there kinda was. It was a gimmick. They couldnt get parts because a lot of places decided to go into a certain model called lean. Order as you need it. They couldnt get parts because of shipping issues and shut downs etc.

then you have the issue with rental cars as well. So people soaked up used cars.

Were their less cars? Yeah, but i personally never saw any empty lots.

then you have the chip shortage as well.

Wholesale used car prices decline to levels not seen since 2020

Compared to this time last year, wholesale used vehicle prices dropped by 10.3%.

www.newsnationnow.com

And yes, inflation is cooling. That doesn't mean that "prices are coming down" -- that's deflation, which again is disastrous for an economy (see post above). But it is a fact that prices in some categories have fallen, specifically energy and yes, used cars.

Consumer Price Index Summary - 2025 M08 Results

www.bls.gov

Prices should come down. And some have. I've seen slow rollbacks. But we also have companies admitting they are gonna push consumers to see what they can get away with.

 

[ElChupacabra]

Imagine how much worse it could have been, with an unfit orange criminal and his collection of felons running things.

Well, we know the former president favored another stimulus.

 

[ElChupacabra]

Unfortunately nobody can afford to go on vacation or to sporting events or concerts.

Tell that to Taylor Swift fans. If they're not going, it's probably because they couldn't get tickets since they sell out almost instantly.

 

[Mongidig]

Tell that to Taylor Swift fans. If they're not going, it's probably because they couldn't get tickets since they sell out almost instantly.

They’re going to the concert but they won’t be able to make their car payment.

 

[Plasmaball]

The 2 main drivers of inflation during the period in question was used cars and housing, both rental and residential prices.

View attachment 67456421

You are missing gas and food.
Or energy prices.
Houses aren't coming down that much. Here in ohio it's still a hot market amd last I saw in San Fran it dropped 30% but it's still well over precovid levels.
Boston is still double or triple as well.

Cars really haven't come down much. I know my car dropped and then went up in value over the last few months. Cars are still being sold over msrp by alot.

Guy I work with bought a new bronco. Not the little Mexican made one. The Detroit version. As he was looking he found people selling the higher end models for 120k a pop because there is a waiting list.


Sure anecdotal but not totally if you just watch the market.

 

[ElChupacabra]

They’re going to the concert but they won’t be able to make their car payment.

Interesting choice of priorities then.

 

[Plasmaball]

Unfortunately nobody can afford to go on vacation or to sporting events or concerts.

My wife and kid are going tonight. What are you talking about?
We are looking to go on vacation shortly as well. We just came back from a 3 day one.
My buddy is going to Egypt for 3 weeks in a week

How about we just stop making up bullshit claims

 

[Mongidig]

Interesting choice of priorities then.

It’s what poor people do.

 

[Rexedgar]

It’s what poor people do.

You know this how?

 

[Gimmesometruth]

You are missing gas and food. Or energy prices.

No, that includes food, I included food because you claimed it was a big driver. It was far lower than houses or used cars.

Gasoline is much more volatile, its price dropped dramatically during covid, went higher during the recovery (demand) and higher still when Putin did his shit.....but if you want to quibble about a price increasing due to demand...well, there you are.

Houses aren't coming down that much. Here in ohio it's still a hot market amd last I saw in San Fran it dropped 30% but it's still well over precovid levels.
Boston is still double or triple as well.

I wasn't arguing they "came down" in price, the point was that they were a big driver of INFLATION, especially rental.

Cars really haven't come down much. I know my car dropped and then went up in value over the last few months. Cars are still being sold over msrp by alot.

Again, used cars have come down a lot, but we were talking about what drove inflation. You keep wanting to talk about dis-inflation, we are not discussing that.

Guy I work with bought a new bronco. Not the little Mexican made one. The Detroit version. As he was looking he found people selling the higher end models for 120k a pop because there is a waiting list.


Sure anecdotal but not totally if you just watch the market.

You just don't understand what I'm discussing.

 

[Galactic Spin]

Sorry you're having trouble.

Sorry a childish troll post is the best you can do.

 

[Galactic Spin]

They’re going to the concert but they won’t be able to make their car payment.

Right, we should totally live like austere monks, but with ubiquitous cars. Because that is our lot in life, per our rich masters.

What kind of flaming commie pinko thinks people who work full time should be able to have a car AND go to a concert? Hippie freaks!

 

[Mongidig]

My wife and kid are going tonight. What are you talking about?
We are looking to go on vacation shortly as well. We just came back from a 3 day one.
My buddy is going to Egypt for 3 weeks in a week

How about we just stop making up bullshit claims

you obviously have money. Most people don’t. You think the average person could afford to go to Egypt?

 

[Mongidig]

You know this how?

Observation.

 

[Galactic Spin]

You know this how?

Reagan told him so. Reagan had the magical ability to have his finger right on the pulse of 100 million Americans he had never met and wouldn't piss on, if they were on fire.

 

[Mongidig]

Right, we should totally live like austere monks, but with ubiquitous cars. Because that is our lot in life, per our rich masters.

What kind of flaming commie pinko thinks people who work full time should be able to have a car AND go to a concert? Hippie freaks!

Most people are in debt with their cars. Most people don’t have the money to go to concerts.

 

[Rexedgar]

Most people are in debt with their cars. Most people don’t have the money to go to concerts.

What is “most people?” Where do you think Taylor Swift’s money comes from?

Observation.

Your observation powers need a bit of work……..

 

[Plasmaball]

you obviously have money. Most people don’t. You think the average person could afford to go to Egypt?

I'm broke till next Friday. What are you talking about?

Tickets don't actually cost a lot. The fees make it alot.

The tickets were 50 a pop. So that's 100 bucks. Add 25 in fees per ticket.

But I'm willingly to struggle for a week so my kid can experience life.

 

[Plasmaball]

No, that includes food, I included food because you claimed it was a big driver. It was far lower than houses or used cars.

Um no i didn't. I said you missed it as well as energy. I hate to break it to you but I read these treads and read the some of the links. When inflation fell from 9 to 7 it was mostly becsuse of gas and energy. Which why you saw gas prices Drop from ( I'm using my location)4.50 to 3.20 a gallon.

Gasoline is much more volatile, its price dropped dramatically during covid, went higher during the recovery (demand) and higher still when Putin did his shit.....but if you want to quibble about a price increasing due to demand...well, there you are.

Um.i work in the industry.. I know exactly what happened.

Oil produces more than just gas. It produces your plastics as well and people were using the oil slikes as an excuse to also drive up prices. And yet when it came crashing down did they lower prices? Nope they have not.

But you also had to include the shipping container issue and storage issue we had for a while there as part of the problem. Since those issues have abided mostly and prices have come down you would think prices for items would rollback more. They haven't. Why? Money and greed.

I wasn't arguing they "came down" in price, the point was that they were a big driver of INFLATION, especially rental.

Yes I said this

Again, used cars have come down a lot, but we were talking about what drove inflation. You keep wanting to talk about dis-inflation, we are not discussing that.

They actually haven't come down in price much. I watch my model car constantly.

You just don't understand what I'm discussing.

Yes I do. I just disagree with your opinion.

It's gotten a lot better from a year ago and i disagree with the rate hikes going this far. I would have let it ride a little longer given the unemployment rates being so low and fairly steady. Let the market correct itself a little. I'd still do some rate hikes but not this aggressive.

Shrug.. you all act like you are the next Alan Greenspans and nobody can understand your brilliance.

 

[Gimmesometruth]

I said you missed it

I did not miss food, I INCLUDED it in the graph. OPEN YOUR EYES.

They actually haven't come down in price much.

Used cars have come down a lot, and they were one of the main driver of inflation in the time period under discussion.

 

[Gimmesometruth]

It's not just houses and cars.

I never said it was just housing and cars.

 

[Gimmesometruth]

(Used car )Prices should come down

They are, that was the point of the article he posted, it is the same thing I told you, yet you keep insisting they have not dropped.

 

[Mongidig]

I'm broke till next Friday. What are you talking about?

Tickets don't actually cost a lot. The fees make it alot.

The tickets were 50 a pop. So that's 100 bucks. Add 25 in fees per ticket.

But I'm willingly to struggle for a week so my kid can experience life.

You make my point. It's a struggle to go out and do things.