Beautiful Virgin Islands

Saturday, Oct 25, 2025

Inflation has stopped Americans from buying vehicles of all kinds — but they're still splurging on travel and good times

Inflation has stopped Americans from buying vehicles of all kinds — but they're still splurging on travel and good times

Despite US inflation at a 41-year high, people are still spending on travel-related expenses like flights and hotels.

Even though inflation is at a four-decade high, Americans are still spending big on travel and experiences.

The Consumer Price Index rose 9.1% over the year ending in June per data published this week, higher than the 8.6% over the year ending in May. The 9.1% rate — the highest since November 1981 — is affecting people's spending behavior.

Although some people are modifying how they spend their money like looking for cheaper alternatives amid high inflation, people are handing over lots of money on certain goods and services. Spending on travel and transportation has shot up this year, but on the other hand, people aren't spending as much on vehicles, consumer spending data shows.

The following chart shows the percent change from January 2022 to May 2022 in Personal Consumption Expenditures from the Bureau of Economic Analysis. The items and services in the chart are some of the things that have seen the largest percent increases in consumer spending during this period.


People are splurging on vacations and good times away from home despite higher prices, as travelers once again take part in "revenge travel." Expenditures on foreign travel were 68.4% higher in May than at the beginning of the year. Spending on air transportation is also almost 40% higher than in January. Additionally, people are spending more on accommodations as they buy hotel and motel rooms for their travel needs.

Monthly Personal Consumption Expenditures data is only available up until May. But with travel demand up as people vacationed for fourth of July and throughout the summer, it may be the case that travel continues to be a popular thing people dish out money on, even with the high costs consumers are facing.

Consumer spending for gas was also up in May from January, with a percent increase of 27.7% for gas and other motor fuel, mirroring skyrocketing gas prices over the last few months. However, Energy Information Administration and AAA data show gas prices have been coming down from their peak.

There are also goods and services that have seen personal spending decline from where they once were earlier in the year. As seen in the following chart, that includes various kinds of vehicles like motorcycles and new autos or light trucks.

People may not be willing to spend big on cars right now with monthly payments soaring. Data from Cox Automotive research shows the monthly payment for a car has reached a record high.


The above chart also highlights that spending is down from earlier this year for different kinds of repairs.

In general, people were spending more on services than goods in May — with spending on services rising $76.2 billion but falling $43.5 billion on goods from April according to the Bureau of Economic Analysis.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×