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Air fares nudge up price of living
By Michael Hanna
It was revealed earlier in the week that the cost of living increased last month. Unfortunately for those seeking a last-minute Easter break abroad, it was partly a rise in air fares which caused the damage for the nation's consumers by nudging inflation upwards.
Latest figures show that the Consumer Price Index (CPI) rose from 1.8 per cent to two per cent and, as this figure gets higher, the prospects of a rise in interest rates increase in turn, especially with the Bank of England keen to hold the index at around its current level and thus possibly considering upping the base rate.
Howard Archer, chief UK economist at the Global Insight consultancy, explained that Easter may have had much to do with the change, saying: "The rise back up in consumer price inflation in April was exactly in line with expectations and largely due to higher utility bills and air fares being pushed up by this year's late Easter.
"It is clear that the Bank of England is now on high alert for any signs that elevated energy prices are increasingly feeding through to have significant second round effects, especially given that inflation expectations have risen recently.
"Consequently, we acknowledge that the hawks at the Bank of England could push for an early interest rate hike, particularly if the housing market continues to strengthen or consumer spending firms appreciably."
The Office for National Statistics (ONS) said that transport was indeed the cause of the increased cost of living, with significant air fare hikes the primary factor as bus fare dropped in price slightly.
Slight rises in the costs of appliances and personal care were detected over April, although the good news for consumers was that restaurant meals and alcohol went down in price a little.
These facts go some way towards demonstrating the volatility of the factors which determine the cost of living, both where essentials and luxuries are concerned. A slight increase can amount to a lot when many items are added up – and the increase in air travel prices itself shows that sometimes you can be nastily surprised when hoping to fork out for a getaway at short notice.
A payday loan can come into the equation here as a possible short-term remedy for a sudden increase in your living costs – whether you're looking to cover the cost of running a household or of a hastily-planned weekend in an idyllic continental hideaway.
The reputable service offered by My Payday Loans allows you to offset any change in your financial outlook until you repay your short term loan next time payday comes around – and in the same way it helps buy you time to adjust to a new situation. Available in sums ranging from between £80 and £1,000, a payday loan provides a trouble-free helping hand which is devoid of hidden charges beyond the rates explicitly advertised.
About the Author
Submitted by:
Michael Hanna
About Michael
Michael is a keen writer, and internet marketer living in Scotland:
Contact details:
E-mail: samqam@googlemail.com
Phone: 0131 561 2251
Michael's Website: Taxi Belfast Airport
Belfast Taxis
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