Consumer Price Index Sees Dip in Airfare and Gas Prices

Alison Fox
·2 min read
A woman shopping online for flight tickets on airline website with laptop, entering credit card details to make mobile payment at home.
A woman shopping online for flight tickets on airline website with laptop, entering credit card details to make mobile payment at home.

d3sign/Getty Images

Airfare and gas prices both dropped in July, allowing travelers to get more bang for their buck on end-of-summer vacations.

Airline fares, which spiked in the spring and early summer, dropped 9.6% from June to July, according to the U.S. Bureau of Labor Statistics' Consumer Price Index. When adjusted for seasonality, the prices still dropped 7.8%.

The Consumer Price Index said airfare prices dropped "sharply" in July, but travelers shouldn't expect a rock-bottom deal just yet — July's flight prices were still 27.7% higher than July 2021.

When it comes to gas, the Consumer Price Index found prices fell 7.7% from June to July, but still remained 44% higher compared to July 2021.

The drop comes after airfare prices spiked more than 18% in April, the sharpest single month increase since the Bureau of Labor Statistics started tracking costs in 1963. The increase was blamed on a combination of higher fuel prices, overall high travel demand, and staffing shortages, which have also impacted widespread airport delays and cancellations.

As of Thursday, gas prices dipped below $4 per gallon, averaging $3.99 nationally, according to AAA. That comes months after the national average topped more than $5 per gallon in June, an all-time high, and even rose to more than $6 in California.

"Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices," Andrew Gross, a AAA spokesperson, said in a statement earlier this week. "Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing."

While some prices have fallen, the price of food is still rising, increasing 1.1% from June to July, according to the Consumer Price Index. It was the seventh consecutive month food prices increased 0.9% or more.

Travelers who are looking to save money on their next vacation should think about early fall since average domestic flight prices are expected to remain at or below $300 through September.

Alison Fox is a contributing writer for Travel + Leisure. When she's not in New York City, she likes to spend her time at the beach or exploring new destinations and hopes to visit every country in the world. Follow her adventures on Instagram.