What's the link between rocketing car hire prices and inflation?

Jul 16, 2021, 09:26 PM

Just when you thought that you could book to go back in the water. 

As if sorting a holiday, ensuring the country you want to go to is okay for long enough to get there, or dodging quarantine roulette wasn't enough, now car hire inflation is biting.

In a sign of the inflationary times, the cost of renting a car has rocketed to about three times the price of last year and it's being blamed on the semiconductor shortage.

How can a lack of computer chips drive up costs so substantially at the car hire desk? 

And what on earth has this got to do with the price of a bag of crisps?

On this week's podcast, Georgie Frost, Grace Gausden and Simon Lambert look at holidays and inflation and the points where supply and demand are intersecting to create very odd scenarios, plus Simon expands on his crisp-based inflation explanation.

Also on this week's podcast, Grace investigates unpaid Dartford Crossing charges that spiralled into a £3,000 bill and Simon looks at what happens if you want to give your house to your child and whether that's an inheritance tax risk.