Auto part prices are rising faster than expected and inflation will heat up into year-end, according to the chief financial officer of Advance Auto Parts, one of the country’s biggest aftermarket parts providers.
Supply-chain disruptions caused by the COVID-19 pandemic, a labor shortage, wage inflation and higher raw materials costs contributed to inflation already exceeding the company’s expectations, and there is no end in sight.
“There is more inflation coming,” said Advance Auto Parts CFO Jeffrey Shepherd on the company’s second-quarter earnings call on Tuesday.
The Raleigh, North Carolina-based company sees parts inflation for the rest of this year in the 2% to 4% range, up from its previous outlook of 1% to 2%.
Advance Auto Parts isn’t alone in warning about higher prices later this year.
CarParts.com CEO Lev Peker earlier this month told FOX Business that higher costs for products, shipping containers and labor would drive auto part prices up another 5% this year. He said they had already seen an across-the-board increase of 5% to 7%.