1 week ago
Air Travel Prices Surge 31.94% in First Quarter
The government measured how much several services became more expensive.
Air travel had the biggest increase, with prices rising 31.94% from a year earlier.
Prices also rose sharply compared with the previous three months.
The article links this increase to flight problems and higher energy costs during the war in West Asia.
Banking figures were mixed because one measure rose while actual banking service prices continued to fall.
Railway passenger prices increased, but freight prices barely changed.
Telecom prices rose more slowly than in the previous quarter.
Insurance prices edged up, while securities transaction prices declined.
Air passenger service price inflation reached 31.94% in April-June, the highest among seven reported service sectors.
Air travel prices rose 18.2% from January-March, partly reflecting flight disruptions and higher energy prices linked to the war in West Asia.
Banking service contribution inflation increased to 6.90%, while banking service prices themselves fell 3.35% year-on-year.
Railway service price inflation rose to 1.27%, driven by a 3.5% increase in passenger service prices.
Telecom service price inflation slowed to 0.72%, while insurance prices rose 0.98% and securities transaction prices fell 1.32%.
- Who
- The Department for Promotion of Industry and Internal Trade released the service Producer Price Indices.
- What
- Air passenger service price inflation reached 31.94% in the April-June quarter, the highest among seven reported service sectors.
- Where
- The data concerns service prices in India; the article links air-travel pressures to the war in West Asia.
- When
- The data covers April-June, the first quarter of FY27.
- Why
- Flight disruptions and higher energy prices were cited as factors affecting air travel costs.
Key facts
- Air travel inflation
- 31.94% year-on-year in April-June
- Quarterly air travel increase
- 18.2% from January-March
- Banking contribution inflation
- 6.90% in April-June, up from 3.30% in January-March
- Banking service prices
- Down 3.35% year-on-year, remaining in deflation for the sixth consecutive quarter
- Railway service inflation
- 1.27% in April-June
- Telecom service inflation
- 0.72% year-on-year, down from 0.99% in January-March
- Insurance and securities
- Insurance prices rose 0.98%, while securities transaction prices fell 1.32%
Quotes
Sakshi Gupta
Principal economist at HDFC Bank
“The banking service price index, which covers fees and commissions, remains in deflation. It is the contribution index which has risen sharply. The contribution index reflects price changes or activity in intermediation services for loans and deposits and the increase in the Q1 index maybe influenced by the rise in loan and deposit growth in Q1.”
financialexpress.com
State Bank of India economists
Economists who authored a State Bank of India research note
“Securities transactions services are captured as securities and pension and insurance. The securities services’ inflation has been rising since Q4FY26 but remains in negative zone.”
financialexpress.com
Sources
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