Auto Trader used car data now used in UK inflation rate

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UK inflation fell to 3.4% in the year to February, the lowest level it has been for over two years.

The figures Office for National Statistics (ONS) included for the first time Auto Trader’s market pricing data.

The ONS has already used its figures for experimental estimates, but as of today (for the figures covering February) Auto Trader data has been fully incorporated into the headline statistics to help represent the movement in used car prices more accurately.

Prior to the partnership, official inflation in car prices was calculated by tracking a sample of around a hundred different models at three different ages, taken from a manual of industry guide prices.

The Auto Trader partnership improves on this, using circa 300,000 monthly price quotes.

Richard Walker, Auto Trader director of fata and insights, said: ““Across the market overall, although there are signs of used car prices stabilising, they’ve softened over recent months, largely fuelled by trends in the wholesale market and a gradual easing in supply constraints.

“The underlying health of the used car market remains robust, however – demand is strong, stock is selling quickly, and more cars were sold in February than last year.

“With promising signs of pressure beginning to ease on consumers, we expect healthy used car demand to continue over the months ahead, helping prices to stabilise even further.”

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