Released: June 25, 2008

As tire prices rise, drivers delay purchases

Source: Sharon Silke Carty, USA Today

Tire inflation used to mean something else.

Now, thanks to soaring prices for oil and rubber, it refers to tire prices as well as air pressure. Consumers shopping for a new set are finding the tab up 5% to 10% this year and likely to head higher.

Keith Price, a spokesman for Goodyear Tire & Rubber, says the price of oil, now at all-time highs, makes up 60% of the raw materials cost for a tire. Natural rubber, a commodity nearing 28-year price highs, makes up another 25%. 

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