Average car prices have risen by 5.2% since the Brexit vote in June 2016, according to industry research.
Together with the rising price of fuel and food, it is one reason why inflation could reach its highest level for two-and-a-half years when official figures are released later on Tuesday.
The City expects the UK's Consumer Prices Index (CPI) to reach 1.9% in the year to January.
It has risen steadily from -0.1% in October 2015 to 1.6% in December 2016.
According to research by What Car? magazine, prices of cars sold in the UK have risen as a result of a fall in the value of sterling, as well as fewer discounts on offer.
It said the price of some larger people-carriers had gone up by as much as 12.3%, although some other luxury cars were actually cheaper.
Questions
1. How has the sterling fall affected car prices - and why?
2. If prices rise, does this mean the sellers gain?
3. How might this affect demand for bus/train travel?
