Signs of divergence between domestic and international air travel inflation
Signs of divergence between domestic and international air travel inflation
14 March 2024
New Stats NZ data shows a 7-point-7 percent yearly increase in domestic airfares, compared to a 2-point-8 percent drop in international airfares.
Despite this, the price of international accommodation has increased by almost 25 percent, compared to around 6 percent for domestic accommodation.
ASB senior economist Kim Mundy says there's still some enduring demand impacting international airfares.
She says people still want to go overseas, which is helping to keep some of those prices elevated.
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