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Inflation continued to retreat in March as energy prices pulled back from a year ago, when they began to spike due to Russia’s invasion of Ukraine.

But swings in gasoline and other energy mask price pressures that, while easing, remain under the surface, economists said.

“It’s improving and the economy is cooling, but it’s still far from tepid,” Diane Swonk, chief economist at KPMG, said of inflation.

The consumer price index, a key gauge of inflation, rose by 5% in March relative to 12 months earlier, the U.S. Bureau of Labor Statistics said Wednesday.

The index measures price changes across a broad basket of consumer goods and services, like food, housing, electronics and recreation.

The latest annual reading declined from 6% in February. The reduction doesn’t mean prices fell; they’re still rising, just more slowly than a year ago.  

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A little bit of inflation is good — policymakers aim for about 2% a year, according to a different but related measure.

While still “painfully high,” inflation has eased significantly from its peak of more than 9% in June 2022, said Mark Zandi, chief economist of Moody’s Analytics. Inflation seems poised to fall back to policymakers’ target by this time next year, barring any unforeseen derailments, he said.

“Inflation is fundamentally moderating,” Zandi said. “And all the trend lines look good.

“I can say that with increasing confidence.”

What drove inflation in March 2023

It’s improving and the economy is cooling, but it’s still far from tepid.

Diane Swonk

chief economist at KPMG

To compare, average pump prices were about $3.54 a gallon this March, according to the U.S. Energy Information Administration. They’ve risen in recent weeks after a bloc of major oil-producing nations announced output cuts.

Housing accounts for the largest share of average household expenses. Elevated inflation in housing has therefore served to prop up CPI readings.

There’s been a “huge” moderation in newly signed rent agreements, said Paul Ashworth, chief North America economist at Capital Economics. But price changes generally take nine months to a year to flow into CPI reports, due to how economists calculate price changes in the housing category, he said.

“The big uncertainty is: We know housing costs should start to moderate … soon [in the CPI], but none of us know exactly when,” Ashworth said.

The food at home index (i.e., grocery prices) fell 0.3% in March, its first monthly decline since September 2020. That’s due to a combination of things like lower prices for diesel, a key component in transporting food to stores, and easing supply-chain issues, Zandi said.

“It signals the food inflation fever has been broken,” Zandi said.

Why inflation popped up and remains high

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Now, inflation is more a story of “services,” which includes categories like haircuts, auto insurance, airline fares, medical care and rent, economists said.

That’s largely due to conditions in the job market, characterized by historic demand for workers, low unemployment and strong wage growth, economists said. Higher labor costs pressure businesses to raise their prices, especially in labor-intensive service industries, economists said. While the labor market remains hot, it has been gradually cooling.

The U.S. Federal Reserve has been raising interest rates aggressively to tame inflation. This mechanism aims to increase borrowing costs for consumers and businesses, who pare back spending, thereby cooling the economy and labor market and, ultimately, inflation.

Recent turmoil in the banking sector is expected to reduce banks’ willingness to make loans — and those tighter credit conditions are expected to further cool the economy and help tame inflation.

That credit tightening will likely help cool inflation in the second half of the year, Swonk said.

“It’s a slow squeeze,” she said.

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Hyroad snaps up 113 Nikola hydrogen semi trucks, spares, and infrastructure

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Hyroad snaps up 113 Nikola hydrogen semi trucks, spares, and infrastructure

It’s been a decidedly weird month in the heavy truck world, and it just keeps getting weirder. Hydrogen shipping startup Hyroad Energy has acquired Nikola Motor’s hydrogen assets and IP, including 113 HFCEV semis, spare parts, and refueling infrastructure.

Hyroad Energy calls itself a leader in hydrogen-powered Class-8 trucks and trucking-as-a-service solutions, and aims to deliver, “reliability, safety, and cost-efficiency for superior results,” according to the company’s website. “We help fleets embrace hydrogen power without the complexities of going it alone. We manage the risks, finance the assets, and leverage economies of scale to drive down costs.”

Those claims became a lot more credible last week, when the company grew its hydrogen semi fleet from (apparently) 0 to 113 Class 8 semi trucks following the acquisition of Nikola’s orphaned hydrogen assets, which include the trucks, a number of spares, and the operational infrastructure needed to keep them on the road.

Hyroad CEO Dmitry Serov says that this acquisition, “significantly advances Hyroad’s mission to provide turnkey hydrogen trucking solutions that reduce the complexity and risk typically associated with adopting zero-emission technologies,” adding, “these trucks and the corresponding equipment and systems represent immediate capacity to put proven hydrogen fuel cell technology on the road to meet demand for zero-emission trucks.”

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The company plans to deploy its newly-acquired fleet assets in California, initially, where some hydrogen refueling infrastructure already exists. More importantly, though, the company says it fully intends to support any Nikola hydrogen trucks already in service, in a bid to promote continuity and market growth for hydrogen-fueled commercial vehicles.

Electrek’s Take


Hyroad Tre; by Hyroad, via ACT News.

The great Tymme Switzer once told me that you could judge a person based on whether or not they would do the right thing when they could get away with doing the wrong thing. In this case, Hyroad seems like it’s going to help – or, at least, try to help existing Nikola customers who have been struggling with their trucks to keep their hydrogen trucks on the road.

Say whatever you want about hydrogen (you know where I stand), but compare Hyroad’s verbal commitment to the hydrogen community to Lion Electric’s calculated abandonment of its customers and callous indifference towards the school districts it fleeced, and continue to judge accordingly.

SOURCE | IMAGES: Hyroad, via ACT News.


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The island where electric bikes are illegal

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The island where electric bikes are illegal

Key Biscayne, a small barrier island off the coast of Miami, has become one of the only places in the United States where all electric bikes are completely banned, regardless of speed class, rider age, or motor power.

This week, the village council voted 4-3 to keep its sweeping e-bike ban in place, rejecting a proposed measure that would have repealed the restriction and allowed adults to ride electric bicycles on the island. The vote effectively makes permanent a controversial emergency ban enacted last year, which was originally framed as a temporary public safety measure following the death of a local cyclist.

Under the current rule, no electric bicycles of any kind are allowed anywhere in Key Biscayne, including Class 1 pedal-assist bikes that are legal on most public bike paths across Florida. The ban applies to both residents and visitors and has been enforced with warnings and fines.

Before the vote, there was major support for repealing or modifying the e-bike ban. Even the Key Biscayne Police Department had recommended loosening the ban, suggesting that the village adopt a more balanced policy allowing adults to ride responsibly while continuing to restrict use by minors. Despite that recommendation, the council chose to maintain the full prohibition.

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The issue has deeply divided the affluent community, where many residents support the ban due to concerns about reckless youth riders and congestion on narrow paths. Others argue that the policy is overly broad and punishes responsible adults, tourists, and commuters who rely on e-bikes as a sustainable and accessible transportation option.

With no exemption even for low-speed pedal-assist bikes, Key Biscayne stands out as a rare enclave where electric bicycles remain entirely illegal – one of few in the US – highlighting the growing tensions around e-mobility in tight-knit communities grappling with safety, access, and change.

What do you think? Should e-bikes be completely banned in these exclusive communities, or should there be leeway for creating common-sense laws that promote transportation while ensuring the safety of all road users?

via: NBCMiami

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Kia is launching all the cool new EVs in Europe, while the US gets put on the back burner

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Kia is launching all the cool new EVs in Europe, while the US gets put on the back burner

Why is Europe getting all the fun new electric vehicles? After its electric SUV, the EV3, has already become a top seller in Europe, Kia is doubling down with new models, like the EV5 and EV4. Thanks to the new tariffs, Kia is pushing for EVs in Europe while the US gets left on the back burner.

Which EVs is Kia launching in Europe and the US?

After launching the EV3 in late 2024, Kia’s compact electric SUV “started with a bang,” as the most popular retail EV in the UK in January.

Through the first half of the year, the Kia EV3 has remained the UK’s best-selling EV among retail customers, with nearly 6,300 registrations. Including commercial vehicles, it was the fourth most popular EV overall.

Kia looks to build on its success with a flurry of new EVs on the way. After opening orders for the EV4 hatchback in June, its first all-electric hatch, Kia introduced the Fastback version, or sedan model, less than two weeks later.

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And then, last month, we got our first look at the upgraded EV5, the European version of Kia’s Tesla Model Y-sized electric SUV, which has been on sale in China since 2023.

Kia-EVs-Europe-US
Kia EV6 (right), EV3 (middle), and EV9 (right) Source: Kia

Kia plans to begin EV4 deliveries in Europe in September. The hatchback will be the first EV Kia builds in Europe at its Zilina plant in Slovakia. Kia said the move will speed up deliveries. However, the sedan will still be built in South Korea.

The EV5 will arrive in Europe later this year. Kia is launching the EV5 in North America in early 2026, but it will be “exclusive to the Canadian market.”

Kia-midsize-electric-SUV
Kia EV5 GT-Line (Source: Kia)

Next year, Kia will introduce the smaller, more affordable EV2. The EV2 will sit underneath the EV3 as Kia’s new entry-level electric vehicle.

Outside of the EV4, which Kia will launch in the US in early 2026, no other models have been confirmed for the US. Although it was spotted testing in the US again this week, the last official release from Kia specifically said the EV5 will be exclusive to the Canadian market in North America.

Kia-EVs-Europe-US
Kia Concept EV2 (Source: Kia)

The EV4 will arrive, but only as a sedan. It will feature up to 330 miles of driving range and a built-in NACS port for charging at Tesla Superchargers.

Kia has yet to reveal prices, but the EV4 is expected to start at around $35,000. In the UK, the hatch starts at £34,695 ($47,700) with up to 388 miles WLTP driving range. The Fastback, or sedan variant, is priced from £40,895 ($55,000) with a driving range of up to 380 miles.

Kia-EVs-Europe-US
Kia EV4 models during safety testing in Europe (Source: Kia UK)

And that’s not even touching the PV5, Kia’s first electric van. Kia is launching the PV5 Passenger and Cargo models across Europe, but whether it will arrive in the US is still up in the air.

Electrek’s Take

Kia’s decision to prioritize Europe over the US is thanks to the Trump Administration’s new tariffs on vehicle imports. Imported vehicles from South Korea are subject to a 15% tariff.

On top of this, the $7,500 federal tax credit is set to expire at the end of September, which will make the US EV market even more competitive.

Kia’s electric vehicle sales are already down significantly this year. Through July, Kia has sold nearly half as many EV9 and EV6 models as it did in 2024. The Korean auto giant is expected to offset slower EV sales in the US with new models arriving in Europe.

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