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U.S. new vehicle prices are expected to hit a record high in August on the back of strong demand despite rising interest rates, an industry report showed on Wednesday.

Average transaction prices are set to reach a record $46,259, an 11.5% increase from a year earlier, according to the report from auto industry consultants J.D. Power and LMC Automotive.

However, an inventory shortage continues to shackle new vehicle sales. Retail sales of new vehicles are expected to reach 980,400 units in August, a 2.6% decrease from a year earlier, the consultants added.

The latest forecast is an indication the U.S. Federal Reserve’s rapid pace of interest rate hikes to tame inflation is yet to have a sizeable impact on the auto industry, which has benefited from consumers’ preference for personal transport during the pandemic.

“In September, the constraints are expected to continue with sales being hampered by available inventory. In the near term, prices and per-unit profitability will remain strong,” said Thomas King, president of the data and analytics division at J.D. Power.

The consultants do not expect provisions from the Inflation Reduction Act for a tax credit boost to “materially influence” electric vehicle (EV) sales volume in the near term due to limited EV availability.

August seasonally adjusted annualized rate (SAAR) for total new vehicle sales is expected to be 13.3 million units, up 0.2 million units from 2021, the report showed.

J.D. Power and LMC Automotive also bumped their 2022 global light-vehicle sales forecast by nearly 1 million units to 81.8 million due to a resurgent China market, which is expected to have an 8% growth in sales compared with last year.