Balearic holiday prices set to rise next year. | Elvira Urquijo A.

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British holiday makers could feel the full impact of the current runaway inflation next year. We have already seen that hoteliers in the Balearics want to hike their rates for next year and that looks set to collide with a spike in airfares.

The high price of oil will result in more expensive airline tickets, according to the former Mallorca-based Willie Walsh, director general of the International Air Transport Association (Iata).

Oil is the single biggest element of an airline’s cost base, Walsh said during an interview with the BBC.
Flying will be more expensive for consumers, “without doubt”, he said.

“It’s inevitable that, ultimately, the high oil prices will be passed through to consumers in higher ticket prices,” Walsh added.

Surging oil and gas prices, exacerbated by Russia’s military offensive in Ukraine and increased demand from economies recovering from the Covid-19 pandemic, have fed into rising global inflation.

Brent, the benchmark for more than two thirds of the world’s crude, rose to a notch under $140 a barrel in March. It has given up some gains since then, but is still trading around the $105 mark.

Inflation globally has risen sharply amid a steep rise in the prices of food and other commodities since the Ukraine conflict began in February.

Inflation is this year forecast to reach 5.7 per cent in advanced economies and 8.7 per cent in emerging markets and developing economies, according to the International Monetary Fund.