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Manx inflation rate rises slightly

Economic news

Economic news

The island’s rate of inflation has risen slightly.

Measured by the Retail Prices Index, the annual rise for July was 3 per cent. In June it was 2.8 per cent.

However, excluding housing costs the annual figure has fallen to 2.3 per cent from 2.4 per cent.

Inflation measured by the Consumer Prices Index, which excludes mortgage interest payments and household expenditure such as buildings insurance, it was 1.9 per cent in July, up from 1.8 per cent the month before.

In the UK, June’s CPI rate was 1.9 per cent and RPI was 2.6 per cent. July’s figure has not yet been published.

Delving deeper into the statistics shows that once again poorer people are being hit harder than the rich.

Rent is up 19.6 per cent while rates are up 10.1 per cent.

Since poorer people are more likely to rent their properties than people who own theirs, that will be a big change in disposable income for many.

Similarly, the cost of food is rising much faster than general inflation. It rose 5.6 per cent in 12 months.

Cereals are up 5.2 per cent, lamb by 8.4 per cent, bacon by 8.4 per cent and milk products 10.8 per cent.

However, potatoes are 29.2 per cent cheaper, vegetables have fallen by 10.2 per cent and eggs by 17.8 per cent.

While the price of alcohol is 5.5 per cent cheaper than it was in July 2013, tobacco is 9.6 per cent more expensive.

Petrol and oil have dropped by 1.7 per cent, while air travel has fallen by 21.1 per cent (possibly due to fewer destinations now being available) and sea travel has risen by 12. 4 per cent.

 

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