Continued Reduction to Inflation Means Optimism for Auto Repair

The automotive repair industry continues to see a deceleration of price increases as the overall effects of inflation have lessened in the 2nd half of 2022. In November, the CPI-U hit a low for the year at 7.1%. In the auto repair segment, the cost of hard goods (both Parts and Equipment and Tires) also registered low rates for 2022. Inflation for the costs of services (Body Work and Maintenance and Servicing) remains high when compared to the past few months, likely a result of permanent wage increases. However, Body Work remains well below the high point of 14.6% from July.

Colonnade continues to monitor the trends in the auto repair industry and the widespread impact for our clients. Given the overall trend this year, we remain optimistic that prices will stabilize in the not-so-distant future.