Inflation on the Isle of Man has risen to 4.9% as higher fuel costs linked to recent global conflict feed through into the island’s economy, according to the latest monthly figures published this week.

The Consumer Prices Index (CPI) shows prices increased by 2% in April compared with March, driven in part by a spike in fuel prices following the outbreak of conflict in the Middle East.

The annual rate now stands at 4.9%, reflecting continued pressure on household budgets.

A Government spokesperson said rising everyday costs, particularly for fuel and food, were having a tangible impact on residents.

‘We know that increases in everyday costs, particularly fuel and food, can have a real impact on households,’ the spokesperson said. ‘We want to reassure people that guidance and advice is available and that we are closely monitoring the situation daily.’

The Government confirmed a further £100,000 has been secured through an extension to the Energy Efficiency Scheme. The funding will support households by providing access to free energy-saving measures aimed at helping reduce rising energy bills.

Despite rising inflation, officials have stressed that essential supplies remain stable. Heating and motor fuel distribution is unaffected, while ferry and air services continue to operate without disruption.

The Communications and Utilities Regulatory Authority (CURA) has confirmed there are no immediate changes to gas pricing or supply. Manx Utilities has also reported that electricity supply and pricing remain stable.

The Economic and National Strategy Board continues to monitor wider economic conditions, with ongoing discussions with the business community and counterparts in the UK. Officials say targeted action remains under review should conditions deteriorate further.

‘While global factors continue to influence prices, we are focused on supporting our community and ensuring the island remains resilient,’ the government spokesperson added.

Chief Minister Alfred Cannan MHK said the ongoing conflict in the Middle East was continuing to place strain on the global economy, with clear knock-on effects locally.

‘The conflict continues to dominate global headlines and it is also putting strain on the global economy. Our immediate priorities in March and April have been to ensure we had confidence in the supply and availability of necessary items such as fuel.’

He added that recent inflation figures reflected pressures already being felt across the island.

‘[The latest] inflation figures reflect what we have already seen, and we appreciate that prices now built into the island’s economy are putting pressure on many households and individuals,’ Mr Cannan said.

‘As we have stated before, we will continue to look towards the longer term and be ready to offer targeted support if people need it. We will keep the situation under review and adapt our response as it develops.’

Around half of Isle of Man households rely on heating oil, making the island more sensitive to fluctuations in global energy prices than many comparable economies. Increased transport costs also continue to feed into the overall inflation rate.

For context, the UK’s most recently published CPI rate for March stood at 3.3%, with April figures due later this month.

The Government has cautioned that direct comparisons should be treated carefully due to differences in timing and basket composition.