NEW car prices are rising at their fastest rate since February, according to the latest Glass's New Car Market Trends report.

The report indicates that prices increased by 1.7 per cent, year-on-year, to the end of May, equivalent to a rise of £221 for the average vehicle.

The upper-medium car sector, which includes such models as Ford Mondeo, Vauxhall Vectra and Toyota Avensis, has seen the largest price increases over the past 12 months, according to the report.

After two years of near price stagnation, the last four months have seen sizeable price rises across many models, equivalent to an average year-on-year rise of 2.7 per cent, or an additional £432 for each car.

The report shows that the lower-medium car sector has also seen increases, with five of the big sellers - Ford Focus, Vauxhall Astra, VW Golf, Toyota Corolla and Citroen C4 - replacing outgoing variants in the class at a higher price point.

In addition, the emergence of a new generation of 'MPV-style' compact family cars, such as the Seat Altea and the Volkswagen Golf Plus, has helped push up average prices in the sector.

The price of the average supermini, examples of which include the Ford Fiesta and the Peugeot 206, fell by 0.4 per cent, or £43, over the last year.

The executive sector has showed little change, down just 0.1 per cent.

To request a free electronic copy of the latest Glass's New Car Market Trends report, email marketing@eurotaxglass.co.uk, quoting reference GNCMT6.