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Three friends enjoy a trip together. (photo via FilippoBacci / E+)
New data from the United States government highlights the rise in travel-related costs for Americans.
According to the latest Consumer Price Index of the US Bureau of Labor Statistics, the underlying inflationary pressures caused a mixed report, which probably ensures that the Federal Reserve will raise interest rates next month.
The hotel industry reported an unchanged rate increase of eight percent compared to March 2022, which also marked an 8.5 percent jump from January. While the increase continues in the trend of rising prices, the growth rate has slowed down from the 26 percent recorded in late 2021.
Air fares in the US also rose in March, with prices for a flight up 17.7 percent year-over-year, while the car rental industry saw a drop in customer spending by 8.9 percent from last year. Rental prices decreased 11.9 percent compared to July 2022.
“We expect inflation to cool slowly but remain high for the rest of the year,” Oxford Economics chief economist Ryan Sweet told Reuters. “Because of this, the Fed is likely to keep raising rates for the rest of the year, defying market expectations for a rate cut.”
Check out our interactive graphics on the new Consumer Price Index data today https://t.co/h249qTRBwC#CPI#BLSdata#DataViz
— BLS-Labor Statistics (@BLS_gov) April 12, 2023
The American Society of Travel Advisors (ASTA) revealed in a survey earlier this week that 47 percent of respondents ranked a vacation as their top discretionary expense. The total is higher compared to improving or repairing the house (23 percent) and a new computer (10 percent), which are in second and third place, respectively.
Additionally, the study found that the number of Americans intending to spend more on travel has increased by 17 percent since late 2022, with Millennials and Gen-Z leading the way at 22 percent more likely. than the average American spends more on its travel. year.
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