Average new car prices increased 0.268% last month - the ninth monthly increase in 2011 meaning that the underlying pace of inflation in car prices has risen over the past 12 months to 4.496%, according to DrivenData.

The average price of a new car increased in December 2011 from £28,648 to £28,725 as calculated from the retail price of every car model currently sold in the UK. During the past 12 months the average annual price of a new car has increased by 4.496%, or £1,236 from £27,489 to £28,725.

John Blauth, editor-in-chief of DrivenData, said: ‘Though the Bank of England kept interest rates at 0.5%, inflation in some sectors shows little signs of falling. The CPI annual inflation was at 4.8% in November 2011, down from 5% in October.

‘The largest downward pressures came from food, petrol, clothing and furniture, household equipment and maintenance. Partially offsetting these were upward pressures from increases in the cost of domestic heating and off sales of alcohol. New car prices echo this trend in that over the 12 months to December 2011.’