For the first time this year inflation is expected to rise this week which could have a knock-on effect with the Bank of England (BoE) keeping interest rates low.
On Wednesday economists are expecting for official figures to show that inflation has risen above the BoE’s 2% target.
The Office for National Statistics (ONS) will report what the Consumer Prices Index (CPI) inflation figure is, this also measures the speed at which prices are growing.
Rob Wood, Pantheon’s chief UK economist, said, “The price of a one-night hotel stay has been very strong this year, partly reflecting a new seasonal pattern since Covid… as well hotels likely charging a form of surge (demand-based) pricing.
“The ONS surveys only about 100 hotels, which means outliers, such as a Welsh hotel price in June boosted by demand from a Pink concert, can distort the figures.”
“But some hotel price inflation is genuine, as a range of CPI service components related to travel or that are labour-intensive have been strong this year,” he added.
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