Why Auto Insurance Rates Are Out of Control

Source: American Prospect
by David Dayen

“As my colleague Bob Kuttner has explained, yesterday’s inflation print was actually a tale of two readings. The overall figures showed only slight moderation in the rise in prices and a topline number that remains above the 2 percent target set by the Federal Reserve. But if you dig into the data, you can clearly see that a few sets of prices are really driving the lion’s share of the price acceleration, while most of the others are subdued. For example, food prices, which once had soared, have essentially been flat for the past few months, as consumers switch to cheaper brands and companies adjust prices to win them back. The prices that are still rising rapidly have a lot to do with structural factors rather than an overheated economy that requires high interest rates to slow things down.” (05/16/24)