The global pandemic brought the auto industry to a standstill last year, forcing manufacturers to close production facilities around the world. With many consumers facing financial hardship, sales of new cars also plummeted. Now, just as the auto industry is starting to recover, the ongoing semiconductor crisis is causing major supply issues and production shutdowns.

Consequently, we've seen sticker prices of popular new models like the Ford F-150, Ford Mustang Mach-E, and Chevrolet Silverado 2500HD increase by around 13 percent. With new cars in short supply, demand for used cars is stronger than ever.

According to data released by the US Bureau of Labor Statistics, the average price of used cars and trucks increased by 10.5 percent between May and June. This was the largest monthly increase ever reported for used cars and trucks since the consumer price index was first published in 1953.

Over the past 12 months, the average price of used cars and trucks increased by a whopping 45.2 percent, the largest 12-month change ever reported. New car and truck prices, on the other hand, are up by around five percent over the past year. Overall, US inflation increased by 5.4 percent over the past 12 months - the highest increase in 13 years.

Unfortunately, the semiconductor chip shortage is showing no signs of ending end any time soon. To overcome this setback, General Motors has been removing non-essential components such as engine start/stop systems from new vehicles like the Chevrolet Silverado 1500 and GMC Sierra 1500.

As well as used car prices, another big factor contributing to the rise in inflation is the rising cost of fuel prices. Over the last year, fuel prices in America increased by 44.5 percent after a shortage of tanker drivers caused pumps at gas stations to run dry across America.