An unexpected increase in inflation between June and July is partly due to higher average used car prices, according to the Office for National Statistics.
The Consumer Prices Index indicates that UK prices are 2.6% higher in July compared with the same time last year. That's up from 2.4% higher in June 2012.
With people keeping their cars for longer, and subsequently starving used forecourts of vehicles, the competition for ready-to-sell used cars has intensified, driving up prices.
What Car? research shows that during the month of July, average used car prices rose 0.8% as the market is denied good-quality, low-mileage stock.
Airfare prices contributed most to the increase in UK inflation, however, climbing 28% as European destinations become more expensive to fly to.
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