Why Airfares Caused an Inflationary Spike

Airfares send UK inflation sky-high. Why?

UK inflation spiked in July 2025—and the culprit was your airline ticket. According to the Office for National Statistics (ONS), airfares jumped 30.2% in a single month, the sharpest rise since records began. The surge made air transport the single biggest contributor to July’s inflation figures.

The timing was key. The ONS measures fares on specific “index days,” and this year the dates happened to fall just after schools in England and Wales broke up on 18 July. Families rushed to book holidays, sending prices soaring. In 2024, by contrast, the same fares were measured before most schools closed, capturing cheaper, term-time prices.

Airfare inflationary spike aircraft wing seen from cabin over clouds

That methodological quirk exaggerated the year-on-year jump. Still, the reality for travellers was clear: tickets to European summer destinations reached record highs, reflecting both demand pressure and airlines’ willingness to cash in.

Even the mechanics of data collection can shape headline inflation. However, on the ground, it simply meant paying more for a seat to the sun.

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