Recent rise in price of flights fuelled increase in inflation

It’s not often that an increase in the rate of inflation is not blamed on the property industry but, on this occasion (and the property industry can breathe a sigh of relief!), it’s the airline industry that’s principally to blame… not a happy thought for many.

Just two months ago, airlines increased the cost of flights by as much as 22% in order to combat the significant hike in Air Passenger Duty (APD) airport departure tax that was dumped on the industry by Chancellor George Osborne… perhaps not a clever move in light of the difficult financial status of many businesses?  Time will tell… But that’s another story!

The Office for National Statistics (ONS) reported that the CPI, or rate of consumer price index, inflation rose to 2.7% in May, in comparison to 2.4% in April.  The ONS said that this rise in inflation was mainly due to the recent increase in overall transport costs, and particularly the increase in air fares.  As the rise in prices by many airlines was as much as 22% and occurred between April and May – the highest increase between April and May since comparable records were established in 2001! – you can be fairly sure that the cost of flights going up so much drove the rise in inflation.

Other indicators to the rise in inflation in May were the cost of footwear and clothing due to colder than average temperatures this spring (the coldest spring in 50 years!), and fuel; whilst the cost of fuel actually fell between April and May, it fell at a much slower rate than the same period in 2012… complicated, isn’t it?!

It seems that the sharp increase in air fares took the analysts by surprise, with the cost of European flights – long and short haul, and the highest prices on record – having the most significant impact on the 2.7% rate of inflation.

On a good note though, inflation is still below the Bank of England’s May average forecast of 2.9%... not by much, but enough! 

At Heathrow Gatwick Transfers, we haven’t increased our prices, despite the rise in inflation.  Operating at our full capacity to deliver the best service we can for our customers is of the highest importance to us.  Quality, highly competitive yet affordable, and meeting your expectations is our mission... and if we’re not achieving that, we’re not frightened to make the necessary changes so that our customers are more than satisfied!  Our fleet of well-maintained, spacious, chauffeur-driven cars are able to carry from one to eight passengers, plus luggage and check-in luggage!  We also offer a FREE Meet & Greet service so you can rest assured that your chauffeur will be there waiting to help you from the moment you arrive, to the moment you depart.  And if you’re running late?  No problem, our FREE waiting time service ensures that we will check your arrival and departures times so that we are there to meet you.

And we don’t charge any extras or charge you to book online with a card – all our prices are All Inclusive so, the price you see is the price you pay.  So, when you book your summer or autumn holiday, business trip, short break, luxury cruise or for any other reason, don’t forget to book your airport/seaport transfer online today at Heathrow Gatwick Transfers and make sure your travel plans are all wrapped up.