UK inflation rises by more than expected to 3.8%, largely driven by air fares
With the triple lock: this now means that pensioners will be making beyond the tax free bracket for income taxes with the state pension alone from next year.
https://www.bbc.co.uk/news/live/cp895dyj046t?post=asset%3Aa5edb286-5ce5-4e9a-ad17-01fabb4dbe29#postOpen linkView original on lemmy.world
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.
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.
Fascinating. Thanks for explaining!