Used vehicle sales and insurance costs increased in February, with new vehicle costs showing a slight decrease, according to a Consumer Price Index (CPI) summary released by the U.S. Bureau of Labor Statistics on Wednesday. 

Used vehicle costs jumped by 2.2% in January and 0.9% in February for an overall 12-month increase of 0.8%, according to the report. New vehicle prices decreased by 0.1% for a 0.3% decrease in the last 12 months. 

“New vehicle price growth was flat — a category to keep an eye on with tariffs on foreign cars expected to show up soon in sticker prices,” Yahoo Finance reported. 

Auto insurance, which increased 11% in the last 12 months, grew modestly at 0.3% in February. 

“Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today,” Yahoo Finance said. 

Over the last 12 months, the CPI increased 2.8%, with a 0.2% increase in February. 

Reuters reports that the moderate price increase was partially offset by cheaper airline fares. 

“But the relief offered by the tame Consumer Price Index report from the Labor Department on Wednesday could be temporary as the data did not fully capture a cascade of tariffs by President Donald Trump’s administration, which has caused a surge in consumers’ inflation expectations and prompted economists to upgrade their inflation forecasts,” Reuters said. 

Reuters says consumers who fear higher prices are purchasing goods like motor vehicles and other big-ticket items. 

Tariffs on steel and aluminum imports could also increase auto part costs, thus increasing the costs of new vehicles and, ultimately, car insurance, Abey K. Abraham, Ducker Carlisle principal, told Repairer Driven News last month.

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