Home Business NewsBusiness Car prices rise due to Brexit vote

Car prices rise due to Brexit vote

by LLB Reporter
14th Feb 17 9:16 am

Have you seen the change in price?

According to industry research, car prices have increased by 5.2 per cent since the Brexit vote in June 2016.

This news coupled with the rising cost of food and fuel is one of the reasons why inflation could reach its highest level in two-and-a-half years, official figures are set to be released later.

The City expected to see the UK’s Consumer Prices Index (CPI) to reach 1.9 per cent in the year to January.

It has continued to rise steadily, it was 0.1 per cent in October 2015 and rose to 1.6 per cent in December 2016.

Research completed by What Car? Showed that some larger-people carriers had seen a price hike of 12.3 per cent, some luxury cars were actually found to be cheaper.

Throughout 2016, 86 per cent of cars were imported from abroad, this is according to the Society of Motor Manufacturers and Traders.

Since the end of June in 2016, the pound has fallen by around 10 per cent against the euro. This has meant that some manufacturers have had to increase prices.

What Car? editor Steve Huntingford, said: “We knew average prices were going up, but rather than a gradual rise, our research has shown that there has been a perfect storm of elements that has conspired to create a big bang in price hikes,”

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