Travelers got some welcome news in Wednesday’s inflation report from the government: Airfares are coming down, and at a faster clip.
The price of the average airline ticket dropped 7.8% in July, to $311, after a 1.8% dip in June, the government said Wednesday.
Lower prices for gasoline and travel were big reasons that overall inflation slowed a bit in July, although consumer prices were still up 8.5% from a year ago.
But before celebrating by splurging on a fancy trip, travelers should be aware that July’s average ticket was still 27.7% higher than in July of last year.
Airlines have been able to push fares higher because demand — at least among leisure travelers — is matching or beating pre-pandemic levels at a time when airlines are operating fewer flights.