Gas, airfares, car insurance: How transportation costs are impacting high inflation
A gas station in Arlington, Virginia.
Xinhua News Agency | Xinhua News Agency | Getty Images
New government data for January shows high inflation has continued into the new year.
That has some economists worried high prices may prove to be sticky, even as the Federal Reserve works to slow inflation by raising interest rates.
Yet as some prices climbed, others subsided, according to the January consumer price index data released by the U.S. Bureau of Labor Statistics on Tuesday. The CPI measures changes in consumer prices by measuring a basket of goods and services over time.
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Transportation costs were one area where prices were in flux.
Notably, a jump in gasoline prices was one of the contributors to an overall 0.5% increase in the CPI for the month. Gasoline rose 2.4% in January, while it fell 7% the previous month.
Yet looking back at the past 12 months, gasoline – at 1.5% – did not make the list of top costs. (The benchmark inflation for all items came it at 6.4%.)
Meanwhile, fuel oil dipped 1.2% in January but was up 27.7% for the past 12 months.
While high gas prices made headlines in 2022, prompting gas tax holidays in some states, those prices have subsided from last year’s highs.
The national average for a gallon of gas is $3.42, AAA reported on Thursday, up a penny from the previous week. The highest recorded average price was $5.02 as of June.
Gas prices “did rise in January and that was mostly due to the weather,” said Andrew Gross, spokesperson at AAA. Winter storms affected refineries on the Gulf Coast and in California. Separately, a weather-unrelated fire at a Colorado refinery is also causing problems.
Oil prices also influence about 60% of what consumers pay at the pump, according to Gross.
January’s jump in gas prices is one example of how the slowing inflation — or disinflation — will not necessarily happen in a “straight line,” according to Brett House, professor of practice in economics at Columbia Business School.
“You have the potential for exogenous shocks or economic shocks that are coming out of the blue that don’t have an economic underpinning to them … knocking prices for substantial changes in any given month,” House said.
Other transportation costs are in flux
New vehicles are up 5.8% over the past 12 months ending Jan. 30, and up 0.2% for the month.
However, used cars and trucks, a category that surged during record high inflation, are now down 11.6% for the past 12 months and down 1.9% for January.
Other transportation categories that were up over the last 12 months include airfares, which climbed 25.6%; motor vehicle repairs, which rose 23.1%; public transportation including airfares, up 17.1%; and motor vehicle insurance, up 14.7%.
Car insurance has been increasing as insurance companies reprice policies to reflect higher prices for parts, noted Nikolai Roussanov, a finance professor at the Wharton School at the University of Pennsylvania.
Other trends, like rising vehicle costs, higher accident rates during the pandemic and poorer returns on premiums invested in the market by insurance companies, may also be factors, according to Peter C. Earle, an economist at the American Institute for Economic Research.
However, there were some signs higher prices in certain categories may be subsiding, based on data for the month of January. Airfares were down 2.1% for the month, on a seasonally adjusted basis. Yet lodging away from home, including hotels and motels, was up 1.5%.
Persistent high inflation in services may continue to push up certain travel costs, according to House.
Strong demand for travel now that Covid-19 restrictions have lifted has also affected prices, House noted.
“People are not spending or emphasizing as much spending on goods as we’ve seen previously,” House said. “People are investing in experiences, getting out, going to cultural things, travel.”
The Honda Ruckus has earned cult status thanks to its minimalist styling, exposed frame, and seemingly endless customizability. The scooter, also known in international markets as the Honda Zoomer, has spent years being seen as a blank canvas for scooter tuners, urban commuters, and anyone who just wanted something simple, small, and kind of weird to zip around town. A few years ago, Honda finally answered the call for an updated version by announcing and producing the “Zoomer e:”, which was an electric version of the Honda Ruckus. So where is it?
When Honda launched the all-electric version of the Ruckus, the Zoomer e:, back in 2023, many fans hoped it was only a matter of time before we saw it quietly glide onto U.S. streets.
But two years later, there’s still no sign of a stateside release, and no indication that Honda plans to change that anytime soon.
The Zoomer e: was first introduced in China in early 2023 alongside two other retro-inspired electrics: the Cub e: and Dax e:.
The Zoomer e: keeps the stripped-down, industrial look of the classic gas-powered Ruckus, but swaps the 49cc engine for a 400W rear hub motor and a 48V 24Ah battery (around 1.15 kWh).
It was originally given a top speed of a mere 25 km/h (15.5 mph) to keep it street legal as an electric bicycle in its first market of China, where it also came with functional but stubby pedals so riders could pretend it was actually pedalable.
The first version of the electric scooter claimed a range of up to 80–90 km (50–56 miles) from its removable lithium-ion battery, depending on conditions.
We’ve since seen the performance bumped up to 40 km/h (25 mph) top speeds when the scooter was introduced into the Philippines market, where the local L1B classification allowed for higher speeds. It’s fairly obvious that the performance can be software-tweaked by Honda depending on the market, though likely to a limit. To achieve speeds much higher than 25 mph, a motor and controller swap may be required, though neither would be complicated.
In other words, the electric Ruckus’ debut revealed an ultra-lightweight, street-legal runabout designed for countries with expansive low-speed e-bike laws. But in the U.S., these types of quasi-e-bikes that are actually scooters are few and far between. The same performance can be had from a $1,000 electric bicycle, and in fact, Class 3 e-bikes in the US can go nearly twice as fast as the original electric Ruckus.
So Honda obviously hasn’t been in a rush to bring its low-spec version of the bike to the US market, where it would be a slower and heavier competitor to the wide range of cheap imported electric bicycles. However, its iconic design and cultural legacy have kept enthusiasm up for riders who have managed to privately import their own models. One Redditor appears to have imported two Honda Zoomer e: models in parts to assemble in the US, while someone else posted a YouTube video of his completely assembled Honda Dax e: model that was launched along the Zoomer e:.
Despite clear consumer interest and a growing market for low-speed electric vehicles, as well as Honda’s own proven interest in growing its electric scooter market, the company hasn’t made any moves to release the Zoomer e: in the US. That’s not surprising since America still lacks a robust electric scooter culture (or even a gasoline scooter culture, for that matter), and anything motorcycle-shaped that doesn’t hit 30+ mph tends to get passed over by mainstream buyers.
But perhaps that could change one day. Technically, bringing the Zoomer e: to the US wouldn’t be a monumental task for Honda. The U.S. is a self-certify country, meaning Honda could design a version that meets federal vehicle safety standards, beef up the motor and controller for higher speeds, and sell it as either a Class 2/3 e-bike, or perhaps more appropriately, as a low-speed motorcycle with a top speed in the 35-45 mph range (55-70 km/h).
With the rise of micromobility, electrification, and growing frustration with car-centric cities, now might actually be the perfect time for a reborn electric Ruckus to hit US roads. But until Honda decides to take that step, American riders will have to keep dreaming – or start importing.
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BMW Motorrad’s futuristic electric scooter just got its first real refresh since beginning production in 2021. The BMW CE 04, already one of the most capable and stylish electric maxi-scooters on the market, now gets a set of upgraded trim options, new aesthetic touches, and a more robust list of features that aim to make this urban commuter even more appealing to riders looking for serious electric performance on two wheels.
The BMW CE 04 has always stood out for its sci-fi styling and high-performance drivetrain. It’s built on a mid-mounted liquid-cooled motor that puts out 31 kW (42 hp) and 62 Nm of torque. That’s enough to rocket the scooter from 0 to 50 km/h (31 mph) in just 2.6 seconds – quite fast for anything with a step-through frame.
The top speed is electronically limited to 120 km/h (75 mph), making it perfectly capable for city riding and fast enough to hold its own on highway stretches. Range is rated at 130 km (81 miles) on the WMTC cycle, thanks to the 8.9 kWh battery pack tucked low in the frame.
But while the core performance hasn’t changed, BMW’s 2025 update focuses on refining the package and giving riders more options to tailor the scooter to their taste. The new CE 04 is available in three trims: Basic, Avantgarde, and Exclusive.
The Basic trim keeps things clean and classic with a Lightwhite paint scheme and a clear windshield. It’s subtle, sleek, and very much in line with the CE 04’s clean-lined aesthetic. The Avantgarde model adds a splash of color with a Gravity Blue main body and bright São Paulo Yellow accents, along with a dark windshield and a laser-engraved rim. The top-shelf Exclusive trim is where things get fancy, with a premium Spacesilver metallic paint job, upgraded wind protection, heated grips, a luxury embroidered seat, and its own unique engraved rim treatment.
There are also a few new tech upgrades baked into the options list. Riders can now spec a 6.9 kW quick charger that reduces the 0–80% charge time to just 45 minutes (down from nearly 4 hours with the standard 2.3 kW onboard charger). Tire pressure monitoring, a center stand, and BMW’s “Headlight Pro” adaptive lighting system are also available as add-ons, along with an emergency eCall system and Dynamic Traction Control.
BMW has kept the core riding components in place: a steel-tube chassis, 15-inch wheels, Bosch ABS (with optional ABS Pro), and the impressive 10.25” TFT display with integrated navigation and smartphone connectivity. The under-seat storage still swallows a full-face helmet, and the long, low frame design means the scooter looks like something out of Blade Runner but rides like a luxury commuter.
With these updates, BMW seems to be further cementing the CE 04’s role at the high end of the electric scooter market. It’s not cheap, starting around €12,000 in Europe and around US $12,500 in the US, with prices going up from there depending on configuration. However, the maxi-scooter delivers real motorcycle-grade performance in a package that’s easier to live with for daily riders.
Electrek’s Take
I believe that the CE 04’s biggest strength has always been that it’s not trying to be a toy or a gimmick. It’s a real vehicle. Sure, it’s futuristic and funky looking, but it delivers on its promises. And in a market that’s still surprisingly sparse when it comes to premium electric scooters, BMW has had the lane mostly to itself. That may not last forever, though. LiveWire, Harley-Davidson’s electric spin-off brand, has teased plans for a maxi-scooter-style urban electric vehicle in the coming years, but as of now, it remains something of an undefined future plan.
Meanwhile, BMW is delivering not just a concept bike but a mature, well-equipped, and ready-to-ride electric scooter that keeps improving. For riders who want something faster and more capable than a Class 3 e-bike but aren’t ready to jump to a full-size electric motorcycle, the CE 04 hits a sweet spot. It delivers the performance and capability of a commuter e-motorcycle, yet with the approachability of a scooter. And with these new trims and upgrades, it’s doing it with even more style.
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