August 11, 2017
One area of notable price declines in the Consumer Price Index is used and new vehicles. The price of both fell by 0.5 percent in July. Over the last year, new vehicle prices are down 0.6 percent, while used vehicle prices have fallen by 4.1 percent. A big part of this story is a glut on the used car market due to the repossession of large numbers of cars sold on subprime loans. This depresses prices in the used car market, which then puts downward pressure on prices in the new car market. For more, check out the latest Prices Byte.