The average price of new cars increased for the third month in a row in March 2011, by £29 from £28,155 to £28,184.

The figures from DrivenData’s New Car Price Index also show that the average annual new car price since April 2010 has increased by 6.221% or £1,650.63 from £26.533.37 to £28,184.

The underlying pace of inflation in car prices has risen over the past 12 months to 6.2%. It only rose by 4.2% between March 2009 and March 2010.

The New Car Price Index is calculated from the retail prices of every car model currently sold in the UK.