Comment on UK inflation rises by more than expected to 3.8%, largely driven by air fares
steeznson@lemmy.world 1 week ago
One thing I was interested in about this news story is that “airline ticket” cost increases have been a major factor. I know that they use a weighted basket of goods, but I thought the basket was relatively static, as in it is a fairly big event when they change the goods/services in it.
Do we have flights as a year-round feature in the basket of goods? I think they make sense in summer but less so in winter.
JasSmith@sh.itjust.works 1 week ago
Flights account for 0.51% of the CPI and 0.41% of the CPIH, which includes owner-occupied housing costs. They’re not seasonally adjusted, so they’re just averaged over the year. You’re right that there are some months which are heavier on certain items, but that doesn’t impact the calculation, just the realised inflation by individuals.
steeznson@lemmy.world 1 week ago
Fascinating. Thanks for explaining!