Used-car prices tumbled in September
Woody Buick GMC owner Woody Woodring discusses car buying trends with FOX Business' Grady Trimble.
The cost of a used car fell by the most in one year last month, contributing to the weakest reading of U.S. consumer prices since January, new figures published on Thursday revealed.
A new Labor Department report found that used-car costs posted a 1.6 percent decline in September after rising for three months straight.
And according to Manheim, wholesale prices decrease more than 1 percent month-over-month in September. The auto auction company’s used vehicle value index now sits at 139.9, flat from a year ago and off the record-high for the index.
Prices for new vehicles, meanwhile, dipped about 0.1 percent.
Aerial view of new cars of different brands parked in rows on a lot.
In September, the consumer price index was unchanged. Over the course of the year, CPI expanded 1.7 percent. A separate key measure of prices (the so-called core CPI, which excludes more-volatile food and energy measurements) inched up just 0.1 percent last month, bolstering support for a third interest rate cut by the Federal Reserve at the end of the month.
Currently, about 77 percent of traders believe the central bank will reduce rates by another 25 basis points on Oct. 30 -- the third time policymakers would have voted to do so this year.
CLICK TO READ MORE ON FOX BUSINESS
The report comes on the heels of Tuesday data that revealed producers prices fell last month, the biggest decline in eight months.
GET FOX BUSINESS ON THE GO BY CLICKING HERE