Sky-high air fares keep inflation above Bank's target rate

ROCKETING summer air fares as sunstarved holidaymakers fled to the Med prevented the headline rate of inflation falling back to its two per cent target last month, official figures reveal today.

- Jonathan Prynn

The Office for National Statistics (ONS) said the Consumer Prices Index rose by 2.2 per cent in August, in line with City forecasts, but still slightly ahead of the Bank of England’s two per cent “Goldilocks” rate.

Air fares rose by 22.2 per cent between July and August, with European routes seeing the biggest increases. It was the second largest peak summer spike since the monthly collection of prices began in 2001, only exceeded in 2019.