The ongoing United Auto Workers strike could present a risk to the fight against inflation, according to Barclays.
According to Sriram, this could consequently put upward pressure on auto prices, which have played an outsize role in persistent inflation pressures.
"We think upside risks to core inflation are likely to materialize primarily in used car prices in the event of a sharp inventory drawdown," said Sriram.
"Used car prices, which account for 3.5% of core CPI (but only 0.5% of core PCE), tend to be sensitive to new car inventories, more so in this post-pandemic period, with car inventories tight and new car prices substantially elevated."
She noted that the strike will not likely affect auto prices through October.
Persons:
—, Pooja Sriram, Sriram, — CNBC's Michael Bloom
Organizations:
United Auto Workers, Barclays, — Ford, General Motors
Locations:
July's