The inflation rate in the island fell last month.

Inflation, as measured by the consumer prices index, reduced to 4% in April, down from 4.4% in March.

Transport continued to be a driver of inflation particularly with air fares which have shown significant increases over 12 months, particularly with the impact of some flights being around the TT race period.

Housing, water, electricity, gas and other fuels also contributed to the increase, with increased costs of heating oil, as a result of the rising crude oil price which is not being offset by improvements in the pound/dollar exchange rate.

There is also a notable increase in rental costs, which are across both the public and private sector.

Some categories have, however, shown limited or no increases in prices over the 12 month period, such as food and non-alcoholic beverages and health costs.

Inflation as measured by the retail prices index, using the Jevons formula for the first time, rose slightly in April - by 0.2% to 6.5%.