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Second largest air fare hike in over 20 years reported in August

The second largest hike in air fares since 2001 was recorded in August, new official annual inflation figures show.

The 22% rise was in contrast to a 2.1% fall between July and August last year. 

However, the increase was offset by lower fuel prices and prices rising at a slower rate in restaurants, the Office for National Statistics (ONS) said.

The air fare price rise for the peak summer month was detailed as the ONS reported that UK inflation was pegged at 2.2% in the year to August and was unchanged from July.

“The largest upward contribution to the monthly change in Consumer Price Index annual rates came from air fares, which rose this year but fell a year ago; the largest offsetting downward contributions came from motor fuels, and restaurants and hotels,” the ONS said.

“Air fares rose by 22.2% between July and August 2024. Fares usually rise between these months, but this was the second largest such rise since the monthly collection of prices began in 2001. The increase came principally from European routes.

“A year ago, air fares fell by 2.1% between July and August 2023. 

“This was only the second time that fares had fallen between these months; the other occasion was in 2020 when price movements were affected by the coronavirus pandemic. 

“The fall partially reflected a relatively high July 2023 index, possibly linked to the departure date for flights priced being closer to the school holiday period.”

The ONS added: “Within transport, these upward effects were partially offset by a downward effect from motor fuels.

“The annual inflation rate for restaurants and hotels was 4.4% in August 2024, down from 4.9% in the year to July, and the lowest rate since July 2021. On a monthly basis, prices fell by 0.7% in August 2024 compared with a smaller 0.1% fall a year ago.”

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