The Inflation Gap Between Used Cars and CPIs New Methodology

Episode 84 of Inflation Explained with Fexingo digs into a fresh inflation blind spot: the CPI's revamped used-car methodology. Lucas and Luna break down how the Bureau of Labor Statistics began weighting auction data differently in early 2026, and why that change may be masking the true price pain at dealerships. They anchor the conversation in the latest May CPI reading of 334.0, the 3.4% core PCE print, and the 10-year breakeven inflation at 2.22. The hosts walk through actual transaction data from Manheim's used-vehicle index, which shows prices rising 4.2% year-over-year in May, while the CPI's used-car component shows only 1.1% annual growth. They explore how the shift to a hybrid auction-survey model has introduced a lag that benefits the Fed's narrative but not the buyer's wallet. The episode is a case study in how measurement changes can distort our view of the economy — and why your trade-in might be worth more than the government says. #UsedCars #CPI #Inflation #BureauOfLaborStatistics #ManheimIndex #CorePCE #Fed #PriceMeasurement #CarPrices #MayCPI #BreakevenInflation #AuctionData #MethodologyChange #RealWorldInflation #CarMarket #EconomicIndicators #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo