Travel Price Index

Overall consumer prices rose 0.1% in July on a monthly basis, reversing the 0.4% decline recorded in June. Year-over-year CPI growth continued to moderate, reaching 3.4% in July, down from 3.5% in June and 4.2% in May.  Housing costs accounted for roughly two-thirds of the monthly increase, rising 0.1%. Energy prices remain elevated, up 14.7% from July 2025, driven largely by gasoline prices, which were 24.6% higher than a year ago. Gasoline prices fell 1.5% in July, marking a second consecutive monthly decline following a 5.7% drop in June. Core prices, excluding food and energy, rose 0.2% over the month and 2.5% over the year.

The Travel Price Index (TPI) fell 1.0% in July compared with the prior month, a second consecutive monthly decline that leaves the index 3.0% below its May level. Despite the recent declines, travel prices remained 7.1% higher than in July 2025. That represents continued moderation from the 8.1% year-over-year increase in June and 9.8% increase in May. Unlike June, when falling gas prices drove the overall decline, July’s decrease was led almost entirely by lower hotel prices. Gas prices and airfares remained roughly 25% higher than a year ago

Category Highlights

• Motor Fuel: Gas prices fell 3.0% in July, a second consecutive monthly decline following June's 9.6% drop. Fuel remains 24.8% higher than a year ago and 41.5% more expensive than in July 2019, the largest increase of any travel category over that period.
• Airfares: Airline ticket prices rose 2.2% in July and have now increased in every month of 2026, up 19.9% since December. Fares were 25.5% higher than July of last year, and 19.2% above 2019 levels, still below the 30.1% increase in overall consumer prices over the same period. Jet fuel prices reversed course in July; after holding below $3 per gallon through the first week, the Argus US Jet Fuel Index rose through the month and closed July at $3.83 per gallon, returning to levels last seen in May. 
• Hotels: Lodging prices fell 3.3% in July, following a 2.8% decline in June. This was the largest July decrease since 2017 and leaves hotel prices only 2.6% above the same time last year. Hotel prices were 8.8% higher than in 2019, compared with a 30.1% increase in consumer prices over the same period.
• Intercity Transportation: Bus and rail fares fell 2.1% over the month and were 4.4% lower than a year ago. Intercity transportation remains the only travel category with price levels below its 2019 level, down 5.3%.
• Recreation and Food & Beverage: Both categories saw only fractional monthly changes in July, with recreation prices falling 0.2% and food and beverage prices rising 0.3%. Food and beverage prices were 3.4% higher than a year ago, roughly in line with overall CPI growth, while recreation prices were up 1.0%.