Inflation in the island fell last month to 1.6% in July 2018, down from 2.6% in June 2018.

The annual rate of inflation, as measured by the Consumer Prices Index dropped 1%, from 2.6% in June to 1.6% in July.

A number of factors impacted on prices during the month including the £/EUR exchange rate.

Sales and discounting within the clothing & footwear and recreation & culture categories also had an effect, with prices falling for many items and services in these categories.

While there continues to be upward pressure from increasing oil costs on both petrol and oil for heating, travel costs have been causing lower upward pressure on inflation than in previous months.

Inflation as measured by the retail prices index fell 0.3% to 4.7%.

Inflation measures the increase in the cost of living, expressed through the prices paid for goods and services by an average household.

Currently in the Isle of Man, about 1,000 prices are collected for some 500 items.