CPI rise in transportation accounted for nearly 27% of total CPI growth year-on-year; Lowest inflation percentage since February 2021 – Bureau of Transportation Statistics | CarTailz

When the prices of goods and services rise, inflation is a concern because it erodes consumers’ purchasing power. Inflation includes the prices consumers face for transportation, as measured by the Consumer Price Index (CPI) for items such as automobiles, gasoline, and airfares. This includes transport costs, as measured in the Producer Price Index (PPI), which manufacturers, wholesalers and retailers pass on to consumers in the prices they charge for their goods and services.

In September 2022, the CPI for transport as a whole increased by 12.6% compared to September 2021.[1] This is the lowest year-on-year increase since March 2021.

After rising steadily since June 2020, the seasonally adjusted transportation CPI has fallen for 4 of the last 6 months and for the last 3 months in a row. From August to September 2022, it fell by 0.6% (Figure 1).

Source: US Department of Labor, Bureau of Labor Statistics, All Urban Consumers (Current Series), Seasonally Adjusted, US City Average, CUSR0000SAT, and Unadjusted, US City Average, CUUR0000SAT, available at https://www.bls.gov/cpi /data.htm

Transportation CPI is the official measure of the price consumers pay for transportation goods and services over time, and is therefore a measure of inflation. Total transportation includes private transportation (consisting of new and used automobiles, motor fuel, automobile parts and equipment, automobile maintenance and repair, automobile insurance and automobile fees) and public transportation (consisting of air fares, miscellaneous). inner-city traffic, inner-city traffic and public transport).

Vehicle ownership and operating costs are the primary contributors to transportation inflation. The CPI for new and used cars has increased in recent months.[2] Supply chain issues slowed new vehicle production and increased demand for used vehicles. The CPI for used vehicles in September 2022 was up 7.2% year-on-year and the CPI for new vehicles in September 2022 was up 9.4% year-on-year. At the same time, the consumer price index for car and truck rentals fell by 1.4% from September 2021 to September 2022, but increased by 2.5% from August to September 2022.

Operating costs are also constantly increasing. Among operating costs, CPI for motor fuels increased the most year-on-year; Gasoline increased by 18.2% in September 2022 and other motor fuels by 49.0%. However, the CPI for gasoline fell 4.9% from August 2022 and other motor fuels fell 2.1%, both for the third straight month. Other operating costs have also increased compared to the same month last year, but less so than for petrol and other fuels:

Automotive parts and equipment increased by 13.4%,
Motor vehicle maintenance and repairs increased by 11.1%,
Car insurance increased by 10.3%, and
Motor vehicle fees (state and local registration and parking fees) rose 2.7%.

Overall, from September 2021 to September 2022, transport contributed 26.7% to the price increase, falling for the sixth consecutive month (Figure 2) to its lowest share since February 2021. Gasoline made the largest contribution – 8.2% of the change of price Price of all items from September 2021 to September 2022 (Figure 3). From March 2021 to July 2022, transportation overall accounted for a third or more of the year-on-year price increase, with the largest contribution coming in June 2021. In June 2021, transportation contributed 58.6% yoy. year price increase in all articles.

Note: Energy services are services such as electricity and utility (gas) lines.
Source: US Department of Labor, Bureau of Labor Statistics, All Urban Consumers (Current Series), Unadjusted, US City Average, News Release Table 7, available at https://www.bls.gov/bls/news-release/cpi.htm

Source: US Department of Labor, Bureau of Labor Statistics, All Urban Consumers (Current Series), Unadjusted, US City Average, News Release Table 7, available at https://www.bls.gov/bls/news-release/cpi.htm

While the transport CPI and many of its components remain above the level of the same month last year, several in September 2022 remained flat or declined from the previous month, showing encouraging signs that transport sector inflation may be slowing.

Transport costs for manufacturers of products

The PPI measures inflation from the perspective of product manufacturers. When manufacturers face higher production costs (input inflation), they often pass the increases on to retailers and consumers, which is reflected in an increase in the CPI.

Manufacturers faced higher PPI prices for all fuel and equipment items in September 2022 than in September 2021. Fuel rose the most, with jet fuel up 73.9% and up 65.9% with diesel fuel (Figure 4). . In terms of transport, the price of truck trailers increased the most (32.0%), followed by truck and bus bodies with (15.6%) (Figure 5). Diesel fuel prices increased by 9.1% from August to September 2022, but significantly less than year-on-year.

On the other hand, price increases for means of transport have slowed down; From August to September 2022 they remained the same or increased slightly. Overall, fuel and equipment prices are above January 2019 levels, with transport equipment prices continuing to rise. Transportation fuel is showing a mixed trend after hitting a high in June 2022, with gasoline steadily declining from that high while jet and diesel fell and then rose in September 2022.

*without means of transport, nec

Note: The stock trucks, tractor-trailers and bus chassis 14,000 lbs. or less, including minivans and SUVs; civil aircraft; aircraft engine and engine parts; other aircraft parts and equipment; and boats are seasonally adjusted. The series jet fuel, trucks, over 14,000 lbs.; truck and bus bodies; Truck trailer; railway equipment; and means of transport, nec are not seasonally adjusted.

Source: US Department of Labor, Bureau of Labor Statistics, Producer Price Index (Current Series), WPS057303, WPS141105, WPS142102, WPS1423, WPS1425 and WPS1432 (seasonally adjusted) and WPU057203, WPU057303, WPU141106, WPU1413, WPU141406, WPU144 and WPU1494 ( not seasonally adjusted), available at https://www.bls.gov/ppi/data.htm

Producers faced higher prices for freight and related transportation services in September 2022 than in the same month last year, except for the organization of freight and freight, which fell by 16.7%. The prices for the water transport of goods increased the most with 27.9%, followed by the truck transport of goods with 16.3% (Figure 6). The PPI in almost every category declined from August to September 2022, with producers seeing little to no month-on-month increase (1.5% or less) in prices for freight and transportation-related services. Overall, however, prices have increased since January 2019, with the largest increase seen in organizing freight and freight (48.2% increase from January 2019 to September 2022).

Note: US Postal Services, courier and courier services (excluding air), marine cargo handling, and airport operations (excluding maintenance and repair) series are seasonally adjusted. The Air Freight Transportation, Trucking Freight Transportation, Rail Freight and Mail Transportation, Water Freight Transportation, Freight and Freight Brokerage, Freight Forwarding, Towage, Towage, Docking and Related Services, and Port Terminal Operations series are not seasonally adjusted.

Source: US Department of Labor, Bureau of Labor Statistics, Producer Price Index (current series), WPS301601, WPS301602, WPS3113 and WPS3121 (seasonally adjusted) and WPU3011, WPU3012, WPU3013, WPU3014, WPU3131, WPU3132, WPU3211, WPU3111 and WPU3112 (unseasonally adjusted) available at https://www.bls.gov/ppi/data.htm

Transport and related services accounted for 11.6% of the annual price increase for all services purchased by producers of goods and services, the lowest share since August 2021 (Figure 7). Freight trucking accounted for the largest share of price change for the services purchased by producers (3.4%) (Figure 8).

Note: Includes: air freight transportation, air passenger services, rail freight and mail transportation, rail passenger transportation, trucking freight transportation, courier and messenger services (except air), U.S. Postal Service, freight and cargo organization, marine cargo handling, port terminal operations, airport operations ( excluding aircraft maintenance and repair), towing, towing, docking and related services, trucking, warehousing, warehousing and related services purchased by industry to generate output.

Source: US Department of Transportation, Bureau of Transportation Statistics calculations after US Department of Labor, Bureau of Labor Statistics, Producer Price Index (current series), unadjusted WPU301601, WPU301602, WPU3021, WPU3022, WPU3011, WPU3012, WPUFD42, WPU3131, WPU3132, WPU3211, WPU3111 , WPU3112, WPU3113 and WPU3121, available at https://www.bls.gov/ppi/data.htm

Source: US Department of Transportation calculations, US Department of Labor Bureau of Transportation Statistics, Bureau of Labor Statistics, Producer Price Index (Current Series), Unadjusted WPU301601, WPU301602, WPU3021 and WPU3022, WPU3011, WPU3012 and WPUFD42, available at https:// /www.bls.gov/ppi/data.htm

Learn more in the new interactive transportation and inflation visualizations from the Bureau of Transportation Statistics (BTS). The data is available per month.

[1] When looking at the change from the same month last year, the Bureau of Labor Statistics reports the unadjusted change in CPI because same-month comparisons account for seasonal price differences. When calculating the change from the previous month, the Bureau of Labor Statistics reports the seasonally adjusted value to eliminate calendar-related price differences.

[2] The CPI covers consumer vehicles including: economy, compact or sport, midsize, full-size, luxury or status, pickup, van, and specialty vehicles including sport/SUVs.

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