Falling airfares contribute to drop in UK inflation

Monthly airfare prices fell by more last month than they did in January 2025, according to new official figures.

Airfares were the second largest contributor to a downward effect on the UK inflation rate after falling motor fuel costs.

The details emerged as the Office for National Statistics (ONS) reported a reduction in the UK inflation rate to 3% in the year to January against 3.4% in the 12 months to December.

ONS chief economist Grant Fitzner said the decline in the inflation rate was partly due to lower petrol prices.

"Airfares were another downward driver this month with prices dropping back following the increase in December," he told the BBC.

"Lower food prices also helped push the rate down, particularly for bread and cereals and meat. These were partially offset by the cost of hotel stays and takeaways."

The ONS said: “The second-largest downward effect came from airfares, which tend to rise into December and fall into January.

“However, in December 2024 and January 2025, this pattern was less pronounced than in previous years. 

“The monthly rise in December 2024 was the third-lowest December rise since monthly price collection began in 2001, and part of the reason for this lower-than-usual growth may have been because the return date for the European flights in December 2024’s index was Christmas Eve, and the return date for long-haul flights was New Year’s Eve. 

“The weaker growth into December 2024 led to a smaller fall than normal into January 2025.

“Whereas the pattern of airfares rising into December and falling into January was less pronounced last year, the index this year followed a more conventional pattern, perhaps because the return flights in December did not fall on Christmas Eve and New Year’s Eve.

“The more pronounced rise into December 2025 and fall into January 2026 led to a large upward contribution to the change in the annual rate in December 2025 and a large downward contribution in January 2026.”