BMW of North America on Thursday said it will increase the prices of 1, 3, 5, X5 and X6 vehicles because of inflation levels. The Destination and Handling fee for all models will be increased to $895 on that date as well.
However, on a yearly basis, inflation eased to 3.5 per cent from 3.9 per cent – the first deceleration in 11 months.
At 3.5%, the headline inflation rate remains elevated; however, the underpinnings of the rise have been soaring energy costs and increasing food prices.
BMW, the largest premium automaker said the increase is less than one percent.
U.S. consumer spending growth slowed in October and business capital investment plans were weak, raising questions about expectations for solid economic performance in the fourth quarter.
The Commerce Department said consumer spending edged up 0.1 percent, slowing sharply from a revised 0.7 percent increase in September.
However, U.S. consumer prices fell last month for the first time in four months. The data reinforces the view that inflation is poised to trend lower following a spike in oil prices earlier in the year.