Airfare is taking a nosedive, so now’s the time to travel

Caroline Woods brings you the biggest news of the day, including fresh CPI data and why now is the best time to book a flight.

Transcript

00:00 I'm Caroline Woods filling in for JD Durkin, reporting from the New York Stock Exchange.

00:05 Stocks were mixed to close out today's trading session.

00:08 The Dow ended down 0.2%, the NASDAQ closed up just under 0.3%, and the S&P 500 closed

00:15 fractionally higher.

00:17 Markets seemed to be shrugging off today's hotter than expected inflation report, which

00:20 showed that consumer prices rose 0.3% in August and 3.7% on an annual basis.

00:28 While this is the fastest increase the U.S. economy has seen since May, the elevated figure

00:32 was driven mostly by a surge in oil prices, which the Federal Reserve can't do much about.

00:38 The Fed's target is to get inflation down to 2%.

00:41 Markets are now pricing in a 97% chance that the central bank holds interest rates steady

00:46 when it meets September 19th.

00:49 And if you missed out on traveling this summer because of sky-high airline prices, perhaps

00:54 the fall will be a better time for your next getaway.

00:56 According to travel booking app Hopper, airfare prices to Europe are slated to drop 31% from

01:02 their summer highs.

01:04 That comes out to about $330 off ticket prices.

01:08 And if you're looking to stay stateside, domestic flights in September and October have dropped

01:12 29% from average ticket prices over the summer.

01:15 Some of the biggest declines in international airfare are to Oslo, Norway; Ibiza, Spain;

01:20 and Tokyo, while prices to Denver, Chicago and Los Angeles have declined by 20%.

01:27 But the sudden drop in prices is nothing new.

01:29 Known as shoulder season, airfares normally drop off after the busy summer months.

01:35 That will do it for your daily briefing.

01:37 From the New York Stock Exchange, I'm Caroline Woods with the Street.

01:40 [end]

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