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News Link • Transportation: Air Travel

Airline Inflation Takes Off: Air Fare Prices Soar At 97% Annualized Rate, Highest Since 1999

After all, why worry about food inflation or the highest gas prices on this day in the year with the exception of 2008 of course, when one can just keep buying ever (hedonically) cheaper plasma TVs (although unclear where said TVs would be put with rent inflation also off the charts). So perhaps the thinking is that the average American can just hop on a plane and go to where the prices are lower? Not so fast.

According to the latest CPI report, the May surge in airfare prices was so dramatic and unexpected, that on a compounded annualized basis (CAGR), the May surge in airline fares was a whopping 97%: the highest since 1999, and the third highest ever.

So, sorry America: you are stuck where you are, eating food that has rarely if ever cost more, fueling up with gas that is approaching it all time high summery prices.

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