Used Car Prices Plummet, Driving June Inflation Below 3%

Used car prices in America experienced the largest monthly decline since the pandemic, with the Manheim Used Vehicle Value Index dropping by 10.3% compared to last year. This decrease in prices is expected to contribute to a potential drop in June's inflation rate below 3%, which would support the Federal Reserve's efforts to control consumer prices. Falling used car prices have a significant impact on core inflation, and if inflation falls below 3%, it would help the Fed achieve its 2% target. However, concerns remain about the potential impact of further monetary tightening on the economy.