The good news is summer vacations are back for millions of Americans. The bad news is those trips will cost a lot more. With prices for all kinds of goods and services rising due to growing inflation, those heading out for a summer trek are likely to feel the impact. "Travel, in particular, is getting his really hard," says Jon Miltimore, managing editor of the Foundation for Economic Education (FEE). "You have airfares, hotels, gasoline, rental cars among the goods seeing the highest upticks in prices across the board."
Miltimore details these rising costs in a new piece for FEE. Gas prices are at their highest level in at least three years, and domestic airfares are up 9 percent in just the last two months. "It's something to keep in mind, if you're making that big 18-hundred mile trek," he says. "Plan accordingly, make sure you have some stops where you're not going to get hit too hard on some of these high prices."
Miltimore cites higher travel demand as one factor in these higher prices. "You have people who were cooped up for a year, and people who want to get out and take their vacation that maybe they missed last year," he says. "And I think a lot of people are going to, but they just need to be prepared there's going to be some sticker shock."
That increased demand combined with inflation brought about by all the stimulus spending in the past year have created what Miltimore calls a perfect storm for higher prices. "This is just a reminder that there isn't a free lunch," he says. "Printing money today can buy you things today, but those costs do come later down the road."