Economics
U.K. Used Cars Drive Inflation With Record Price Rise
- Consumers pay more for an alternative to public transport
- Semiconductor shortages curtailed production of new cars
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Used car prices rose the most on record in the U.K. last month, driving inflation higher as consumers splashed out to avoid public transport.
The cost of previously-owned vehicles rose 4.4% in June, the most since records began in 1988, and contributed to an unexpected 2.5% annual increase in consumer prices, the Office for National Statistics said on Wednesday. The ONS said consumers were paying more to avoid trains and buses.