Inflation — Dropping for Most Businesses but Not Insurance

Inflation is finally dropping. It’s down to 3%. The Federal Reserve wants inflation to be 2% but is cautiously pleased and for the time being, won’t be raising interest rates.

That’s good news for business and those wanting to finance a home.

The 3% is the lowest inflation has been since 2021. Prices of gasoline — (editor’s dig) unless you live in Washington State or California — have fallen. So have airline fares, the price of a new or used auto, and — best of all — the price of groceries.

The prices of some items have not fallen. They continue to rise. One of them is insurance. Auto insurance — for example — has rates averaging 16.9% higher than a year ago.

We’re driving more than we did during the pandemic and we’re apparently not driving as carefully as we used to drive and there are a lot more crashes than auto insurers like. The why of that one is easy. The cost of repairs are skyrocketing mostly because of the high cost of parts and getting parts.

Source link: Insurance Business America —

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The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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