June 22, 2000 (The Editor’s Desk is updated each business day.)

No rise in new vehicle prices for three years

For three years in a row, prices paid by consumers for new vehicles have not increased.

[Chart data—TXT]

In 1997, prices of new vehicles fell by 0.9 percent—the first decline since 1971. Prices were steady in 1998 and decreased by 0.3 percent in 1999.

Dealers and manufacturers gave consumers increased rebates and concessions in 1999. Moreover, in recent years, consumers have become better informed and price savvy, using the Internet to compare styles, equipment options, and prices of vehicles conveniently from their homes.

These data are from the BLS Consumer Price Index program. To find out more about trends in consumer prices, see "Core consumer prices in 1999: low by historical standards," by Todd Wilson, Monthly Labor Review, April 2000. Annual percent changes are from December-to-December.