Pro Take: A Big Source of Inflation Is Parked in the Garage

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The U.S. central bank called a timeout on raising interest rates last week, but indicated its fight against inflation is far from over. One area of resistance in that inflation-taming fight lurks in home garages.

Auto insurance—which costs Americans about $1,600 per vehicle a year—seems immune to the 10 rate hikes made by the Federal Reserve since March 2022. What consumers paid to insure vehicles rose more than 17% in May on a 12-month basis, according to last week’s consumer-price index report—well over the Fed’s 2% inflation…

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