Inflation affects our daily lives in different ways – just ask anyone who’s tried to buy eggs this year. New research published by the Bureau of Labor Statistics found that profit margins at car dealerships were a driver of this inflation.
The Bureau of Labor Statistics says in the research that it was published In this month’s dealership magazine Labor Labor, car dealerships were well-placed for vehicle tokenization due to their place as the nation’s auto supply route between manufacturers and consumers. COVID-19 pandemicd to facing car manufacturers Supply shortages while economic stimulus controls led to a lot American consumers with a little extra cash to dismiss. Brokers – agents – saw an opportunity and managed to raise their rates to a peak of 144.7% between December 2019 and December 2022 according to the research.
Michael Havlin, an economist with the US Federal Maritime Commission and an author of the research, told Lt Wall Street Journal. “And the dealers are the ones who have inventory.”
As detailed in the manuscript, in the era following the economic downturn of 2008, dealerships faced price hikes from manufacturers and did not pass these costs on to consumers, who were concerned about higher prices in the wake of the recession. The emergence of the COVID-19 pandemic It was enough to upend that dynamic, giving dealerships leverage over consumers. While pandemic lockdowns have caused manufacturers to produce fewer cars, dealerships have had enough extra inventory to weather the weather. This slowdown. Likewise, the extra money consumers received from stimulus checks encouraged them to buy physical goods, such as cars, which led to higher consumption.
The research indicates that proxies have contributed to the overall inflation we have seen over the past few months, albeit “modestly”. Car dealerships aren’t alone, however. Egg prices have been another symbol of insurmountable inflation. In December 2022, egg prices increased by 60% year-on-yearwhile food price inflation in general witnessed an increase of 10.4% year on year.
(tags to translation) Inflation