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Bottom Line - Low Cost Airlines To Increase Their Prices?

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Low-cost airline Ryanair has seen its profits hit by rising fuel costs in the third quarter of the financial year.

Another nail in the 'low inflation' miracle.


Remember this?

The Consumer Prices Index (CPI) fell to 2% in December from 2.1% in November, in line with Bank of England targets, mainly because transport costs fell.

"For the second consecutive month, the largest downward effect on the CPI annual rate came from transport with large downward contributions from air travel, fuels and lubricants," the ONS explained.

Edited by karhu

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The company said its costs would have been reduced overall, but rose 3% in the quarter primarily due to fuel costs rising 59%.

It said it had hedged the costs of its fuel to $49 a barrel until the end of March, but was unhedged after that.

However it said it was monitoring the situation and hoped to hedge its fuel requirements for 2007.

This is a very important point. Last October markets expected fuel prices to fall back to lower levels. I can't imagine many businesses hedged their costs for the long term - they might feel obliged to now even at today's prices. In effect locking in today's fuel prices.

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They were also going to add 3.5GBP a luggagge, I believe it would not go into inflation figure calculation some how

Yep, luggage is an optional extra :unsure:

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Inflation gauge jumps in Australia

The TD Securities-Melbourne Institute Monthly Inflation Gauge showed prices rose by 0.7 percent in January, the biggest gain in the 42-month history of the series.

It's all happening very quickly. I can barely keep up!

Who would have ever thought interest rates would have gone so low.

I don't think we can imagine how high they're going to go!

Expect the unexpected.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
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      • up 5%

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