Holiday inflation above average

Holiday inflation above average

If you were fortunate enough to go away during the December holidays, January may be the time you look back on how much it all cost you. CPI inflation for December 2013 was 5,4%, slightly higher than the 5,3% of November 2013. But most of the specific holiday costs are showing inflation rates above this average.

If you were travelling by car to your holiday destination, you would have experienced the 17c/l petrol price increase. This resulted in you paying 10% more in 2013 for petrol than you did in 2012. Long distance bus passengers were hit by a 26% monthly increase in their tickets. This scale of short term price increase is commonly employed by bus operators as demand increases at this time. Long distance bus tickets have increased by 7,9% since December 2012. In fact, from an inflation perspective, it would have been better to travel by airplane. The price of airfares have increased at 5% – slower than average inflation.

Once you got to your destination and checked into a hotel, you would have realised that you are now paying 8,5% more for the same room as you did the previous year. By comparison, restaurant prices have increased by 6,8%.

Perhaps you thought that you would book an all inclusive package holiday. This would cost you a hefty 13,2% more than if you had gone on the same holiday last year.

Download the full publication here.