A fall in used car values helped keep a lid on inflation in Octobe which fell to 4.6% compared to 6.7% a month earlier.
“[In Transport] the largest contributing downward effect came from the purchase of used cars where prices fell by 3% between September and October 2023, compared with a fall of 0.6% in the same months last year.
“On an annual basis, prices fell by 3.6% in the year to October, compared with a fall of 1.2% in the year to September,” said the Office for National Statistics (ONS).
Valuation guides have been keeping close tabs on prices. Used car values continue to fall according to valuation guide cap hpi.
The group reported that used values have slipped 1.5% on average since the publication of its most recent monthly editorial on 27 October.
The news follows the 4.2% drop reported at the end of October, which marked the largest drop in a single month since the introduction of cap Live in 2012 and the biggest fall since May 2011, over 12 years ago.
Derren Martin, director of valuations at cap hpi, said: “The market is moving quickly, and the valuations team at cap hpi is making thousands of adjustments to vehicle values on a daily basis. Vendors and buyers must keep up to date on market movements through this transitional period.”