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MNI BRIEF: Car Prices To Fall As Bottlenecks Resolve -Clev Fed

MNI (Washington)

Price gains stemming from a shortage of semiconductors needed to manufacture new vehicles should subside in the next six to nine months, Cleveland Fed researchers said Thursday, as materials shortages abate and inventories increase.

New and used vehicle prices have accelerated since mid-2020 as factory shutdowns, insufficient materials, and global supply chain disruptions tied to the pandemic hampered production while demand for vehicles spiked.

"Recent inflation readings in the United States have been high, but they have been driven in part by components with known supply issues and components related to the reopening of the economy," the researchers wrote.
MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com

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