UK Inflation Rise Highlights Impact of Air Travel

As UK inflation jumps to 3% in January — higher than the 2.8% forecast — economists are examining the driving factors behind the rise, particularly in areas like food prices, private school fees and air fares.

While air fares do typically drop in January after the holiday travel season, this year’s month-on-month decrease of -19% was considerably smaller than the recent post-pandemic drops of -38.9% (Jan24) and -41.7% (Jan23) — doing little to offset rising costs in other segments.

At Zeusian Analytics we develop proprietary data feeds that help economists, portfolio managers, and inflation traders to forecast Consumer Price Index (CPI) trends with greater precision. By focusing on the volatile "Passenger Transport by Air" component of CPI, which is uniquely sampled by the Office for National Statistics (ONS) from six months prior to the index month, our data is designed to inform both short- and long-term forecasting and market strategy.

Contact us today to explore how our data solutions can help you.