The U.S. Bureau of Labor Statistics announced that in June, the Consumer Price Index (CPI) for the New York-Newark-Jersey City area increased by 0.6 percent, driven by higher prices for household energy and shelter. Over the past year, the CPI-U rose by 4.2 percent, with energy prices up by 7.7 percent and food prices increasing by 2.0 percent.
According to the U.S. Bureau of Labor Statistics, food prices rose 0.5 percent in June, with food at home increasing by 0.8 percent and food away from home ticking up by 0.2 percent. The energy index increased by 3.7 percent for the month, driven by a 14.1 percent rise in electricity prices, despite a 3.2 percent drop in gasoline prices. The index for items excluding food and energy rose 0.5 percent in June, with higher costs for shelter, household furnishings, and recreation.
The U.S. Bureau of Labor Statistics also reported that across the country, inflation dropped 0.1% in June but rose 3% over the 12-month period ending in June. The cost of car insurance rose 0.9% in June and 19.5% during the last year, placing it among indexes that experienced "notable increases" over the last year.
The Insurance Information Institute (III) stated that "legal system abuse" is making insurance more expensive for policyholders, according to a press release. Practices such as third-party litigation funding (TPLF), where a hedge fund or other financier provides funding for a lawsuit in exchange for a share of the settlement, constitute legal system abuse according to III.
"The price of insurance is the effect, not the cause of risk," said III CEO Sean Kevelighan, adding that there must be more work done to curb legal system abuse as auto insurers – both personal and commercial – are seeing significant increases in claims costs when attorneys enter into the picture.
