Travel Costs Boosts Inflation

Travel Costs Boosts Inflation.

The Office for National Statistics (ONS) has said that the Consumer Price Index (CPI) rose from1.6% to 1.8% in March.

Travel costs are being linked to the rise in inflation with higher fares for flights and higher petrol costs madking up for the drop in cost for food. Easter fell in April this year so more people were travelling during this time and travel costs often rise during holiday periods.

Sea and air fares were thought to be the main contributor to travel costs and the rise in inflation with families traveling overseas for the holidays.

Food was the largest decline where prices fell by 0.5% between March and April when compared with the same two months last year, which rose 0.7%.

But this was not good news all round as it is predicted that once again inflation is rising faster than wages.