The Isle of Man’s Treasury Minister has welcomed a further fall in the rate of inflation in the Isle of Man.

A decrease of 0.3 percentage points compared to February saw the rate of inflation at 3.2% in March, as measured by the Consumer Prices Index (CPI).

The category 'Restaurants and Hotels' exhibits the biggest increase, having risen 10.1% compared with 12 months ago. 

'Wine & Spirits on sales' (wines and spirits sold on licensed premises) has seen the biggest increase in this category (20.7%)

The second biggest increase is 'Housing, Water, Electricity, Gas, & Other Fuels', having risen 9.5% compared with 12 months ago. 'Electricity' has seen the biggest increase in this category (34.8%)

And although 'Bus and Coach Fares' shows a rise of 11.4% over the past 12 months, this is believed to be due to the capped fare scheme ending in April 2023. Dr Allinson said: 'Prices are now rising at their slowest annual rate since August 2021 and the unbroken trend of a falling inflation rate since the turn of the year is an encouraging sign. 

'This time last year annual inflation stood at 9.2% which put considerable strain on household budgets. Lower inflation maintains the purchasing power of people’s money. It also brings stability and a better level of predictability, boosting confidence, which encourages spending and investment, fuelling economic growth.'

He added: 'I know that some in our community are still feeling the pinch but I expect we will see further falls in inflation throughout 2024. The UK’s inflation rate is also decreasing, heading towards the Bank of England’s target of 2%.

‘The Treasury is closely monitoring UK monetary policy, with many expecting a reduction in interest rates this year, which would make borrowing – including people’s mortgages – cheaper.’