Vehicle prices continued a downward trend in July — the most of any major category in the Consumer Price Index (CPI) over the last year as the car market continues its return to "normal" following pandemic-fueled inflation.

Used car prices fell 2.3% over the prior month in July and 10.9% from the prior year, data from the BLS revealed on Wednesday. New car prices fell 0.2% in July and 1.4% from the prior year.

Compared to their peak in February 2022, prices paid for used vehicles are now down 19.4%. Used car prices rose more than 40% annually in both June and July 2021, and again in January and February 2022. Prices for used cars and trucks are still 16.9% higher than in July 2019.

In July, headline CPI rose 0.2% over the previous month and 2.9% over the prior year, which was a slight deceleration compared to June's 3% annual gain in prices and also ahead of economist expectations of a 3% annual increase.

The continued downward pressure in the used and new vehicle market comes as inventories build up, leading to lower prices — especially when it comes to used cars.