The rate of inflation in the Northeast Region, which includes New Jersey, saw an increase of 0.4% in May of 2024, with a 3.9% increase over the past twelve months.
The national rate of inflation for May was 0%, while the rate of inflation over the year ending in May was 3.3%, according to the latest Consumer Price Index (CPI) summary. Motor vehicle insurance was listed among indexes that experienced "notable increases" over the last year at 20.3%.
The rise in the northeast region during the month of May was driven by a 0.5% increase in the all items less food and energy index during the month. The index has seen a 4.3% rise in the past year, and has been the leading increase across all indexes since March of 2023.
Comparatively, the food index has risen 2.1% over the past 12 months, and the energy index increase 3.4% over the same time period.
According to testimony from the American Property Casualty Insurance Association (APCIA) for a House Financial Services Committee hearing in November, “legal system abuse” is one of the root causes of rising insurance costs for consumers. APCIA pointed to the increasing size of jury verdicts, the involvement of third-party financiers in lawsuits, and a proliferation of attorney advertisements as contributors to this legal system abuse, which forces businesses to raise their prices to account for a heightened cost of risk. The organization called for legislators to enact tort reform measures to address these abuses.
