WASHINGTON — Prices for new and used cars rose sharply in October, partially reflecting a whiplash from the government’s Cash for Clunkers program that winnowed inventories at dealership lots. The price spike also has to do with car companies delivering more expensive 2010 models to the showroom.
The Labor Department reported Wednesday that consumer prices for new cars rose 1.6 percent, the largest monthly increase since May 1981. Used cars also saw a price hike of 3.4 percent in October, the largest increase since September 1980.
All of this came against the backdrop of a sluggish economy — consumer prices are lower than a year ago, and the higher car prices accounted for 90 percent of the overall 0.3 percent consumer price gains last month.
The Associated Press
