THE average retail price of a new car in Western Europe during July was 3% higher than the same month last year, latest figures show. An Index of New Car Prices produced by Pricewaterhouse-Coopers and eurocarprice.com measures the retail price of more than 100 representative cars in 19 European countries.

Denmark continues to be the country experiencing the strongest movement in retail prices, which rose by 7% during the 12 months to July. The weakest price movement was in Hungary, where retail prices fell by 3.2%.

The index, based on data from JATO Dynamics, shows the average pre-tax prices of vehicles across Western Europe increased by 1.9% during July.

In the UK, when converted to euros, pre-tax prices increased by 3.1% in the 12 months to July and were 8% higher than the average for Western Europe.

The study shows that the lower medium segment of the market showed the largest increase over the year in average pre-tax prices at 8.9%.

Movements in other main volume segments are: small (3.8%), upper medium (4.7%) and executive 8%.

Eurocarprice.com operations director Robin Goodyer said: 'The trend to 'fashion' SUVs and MPVs continues to influence average prices upwards throughout Europe, as these cars are generally more expensive than their more traditional alternatives.

'Compared to last year, volumes in the executive, small MPV and small SUV segments are up by 0.5% across Europe while mini and upper medium volumes have declined by 1%.'

Goodyer added that during the last month average prices in the three new EU entrants, Poland, Hungary and the Czech Republic, have increased in line with the European average.