Furthermore, an environment of overall price stability contributes to economic efficiency by reducing the variability of relative prices and by minimizing the distortions that arise because the tax system is not completely indexed to inflation.
Motor vehicle sales have been supported by low financing costs, by high levels of customer incentives, and by high rates of vehicle scrappage and multiple car ownership. More broadly, strong growth of labor productivity, supplemented by reduced tax payments, has provided a boost both to incomes and to spending.