Inflation Relief May Be Short-Lived as Used Car and Airfare Prices Seen Rising Again

Used car and airfare prices that have fallen recently may start rising again soon, slowing inflation's decline.

Economists think the Federal Reserve's projections for lower inflation are too optimistic and a return to 2% in 2024 is unlikely.

Shortages in used cars and potential auto strikes could cause fresh price increases.

Airfares are volatile but have less room to fall as airline capacity returns to normal.

Housing costs are a large component of inflation indexes so changes there will significantly impact the path.