Summer Holidays Offer No Respite From Inflation

Summer holidays are meant to be a time to switch off, unwind and temporarily leave your worries behind. But what if the one thing that’s been your greatest concern for years simply follows you wherever you go? This is how many Americans must currently feel when making plans for the summer. High prices and inflation have been the number 1 issue on many Americans’ minds since consumer prices started surging in 2022. According to a YouGov/Economist poll from last week, 31 percent of U.S. adults said that inflation was the biggest issue facing the country right now, miles ahead of “jobs and the economy”, which was picked as the number 1 problem by 11 percent of respondents.

Unfortunately, inflation doesn’t take a break during summer and some travel- and leisure-related expenditure categories have seen particularly large price increases over the past 12 months. Above all, gasoline prices and airline fares have surged 40.5 and 26.7 percent between May 2025 and May 2026, respectively, meaning that Americans can’t even get to their holiday destination without being reminded of their biggest problem at home.

As our chart shows, other holidays essentials, like accommodation, restaurant visits or drinks away from home, have also seen significant price increases over the past year. All these categories have seen prices rise faster than average wages, meaning that summer holidays won’t just feel more expensive, they will in fact leave a bigger hole in household budgets. There is some good news as well, though: prices for recreational books have declined 1.8 percent since May 2025, meaning that reading on the beach is one of few regret-free holiday activities this summer. Car and truck rentals have also become 6 percent less expensive, which is probably a small consolation in light of current gasoline prices.