More people are eager to travel, but the latest data from the U.S. Bureau of Labor Statistics indicates that it’s getting more expensive to travel, too.
The BLS recently released its Consumer Price Index for June, which showed a 5.4 percent overall increase year over year, which was the largest 12-month jump since 2008. Naturally, this stat is grabbing headlines, but individual travel-related categories have some pretty stark increases as well that are worth looking at.
For example, rental cars and trucks are up nearly 88 percent in the past year. My colleague, Chris Pardo, touched on the “Carpocalypse” in more detail in this post from May.
Airline fares are also up about 25 percent in the past year, while other modes of intercity transportation are up roughly 13 percent. Transportation services overall — which also includes things like motor vehicle registration and auto repair — are up 10 percent.
The fact that more and more people are eager to travel — whether for personal or work reasons — bodes well for the mobility industry in the long run. However, it’s worth being mindful of these inflationary pressures that figure to add costs to a relocation or assignment. This is especially important in areas where relocating employees may be expected to pay out of pocket, at least until they’re reimbursed later. It’s a good idea to be as transparent and informative as possible when it comes to the price tag that comes with travel these days.
The Consumer Price Index jumped by 5.4 percent in the year through June, the Labor Department said on Tuesday, the largest year-over-year gain since 2008 but one that is expected to fade as the economy moves past a volatile reopening period. The Biden administration quickly pointed out that much of the move was tied to temporary supply issues: Prices for previously owned cars and trucks rocketed higher and accounted for more than a third of the increase.