BLS CPI numbers for 'new cars' have an average annual inflation of 1.03% over the past 20 years, for a total increase of 22% - almost all of which was since 2021 (2000-2020 the average inflation was 0.39%). Up until 2010, prices were mainly falling.
Over the same 20 years, potatoes have on the other hand undergone an average inflation of 2.83% a year, for a total price increase of 74%. And much less of this in the current inflation spike - prior to 2020 the average inflation of potatoes in the preceding 20 years was over 3%.
Admittedly, BLS 'new cars' is not just 'entry level cars' - it's based on surveyed prices actually paid for whatever cars people are actually buying, so it's possible that changes in who is buying new (vs used) or what kind of cars they're buying new are keeping that number more steady than it should be.
But spot-checking a few original MRSPs for 2002 and 2022 model year Hondas and Toyotas and the like, it does look like the entry price has gone up from 'around $16K' to 'around $20K'... which is about in line with the CPI (25% vs the index's 22%) and considerably less than the increase in the cost of potatoes.
So... 'taking into account inflation,' new cars are cheaper today than 20 years ago (if you are paying for them with potatoes). On the other hand if you are paying for them with T-shirts (which have enjoyed basically 0% inflation over the past 20 years), new cars are indeed more expensive.
But since the BLS adjusts and takes into account things like how much of people's income they spend on average on cars and t-shirts and potatoes when they weight the goods in the CPI basket, all those things get rolled into the overall inflation number. And that means that 'taking into account inflation' when comparing the price you pay as an individual who chooses to buy a car in year X with the price you paid as an individual choosing to buy a car in year X - N doesn't really make much sense. It's confusing an input with an output.
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