The cost of living is rising in the Isle of Man.

February’s inflation figure was released today.

On the Consumer Prices Index, a basket of goods is 1.9 per cent more expensive than 12 months ago.

The figure for January was 1.6 per cent.

The Retail Prices Index says the annual inflation rate is running at 7.1 per cent. A month ago it stood at 6.9 per cent.

So, what’s the difference?

The goods used in each measure are different, with the RPI measure including mortgage interest and other housing expenses (excluded from the CPI) and the CPI including university fees, excluded from the RPI.

In addition, a different formula is used in the calculations for RPI compared with CPI, with the result that RPI figures are generally significantly higher.

A third measure of calculation, the RPI (Jevons) uses the RPI ’basket’ of items but uses the CPI formula (known as the Jevons formula) for its calculations. This is said to mitigate the uplift on the standard RPI figure.

The RPI Jevons figure for February is 2.4 per cent.

Looking a little deeper into the figures reveals big rises in the price of petrol and oil (15.1 per cent), tea (15.2 per cent) and contact lens solution (15.4 per cent).

But bacon dropped 7.5 per cent, gas was down 7 per cent and household consumables fell 9.5 per cent.