Inflation rate hits two-year low

The CPI index now sits at 5.2%

Inflation on the Isle of Man has hit a two-year low and now stands at 5.2 percent.

The figure for December, as measured by the Consumer Prices Index, has dropped by half a percentage point from November. 

Alcoholic drinks and tobacco show the biggest rise - of 12.7 percent - in comparison with the same period a year prior.

The second largest increase is seen in restaurants and hotels with a 11.3 percent rise in comparison with 12 months ago.

And the third largest contributor to inflation has been seen in food and non-alcoholic drinks with a rise of 7.4 percent.

Electricity continues to be one of the largest contributors to the inflation rate seeing an increase of 34.8 percent.

Decreases over a 12-month period are seen in gas, oil and other fuels and furnishings.

Over a period of one month, transport costs have seen the biggest shift downwards since November 2023, falling by 10.6 percent.

However, over 12 months, transport remains up by two percent.

A spokesperson for the Treasury told Manx Radio: "Treasury officers have been closely monitoring the local economy and are encouraged by the recent decreases in inflation alongside a growth in the number of jobs in our Island.

"We expect this trend to continue during the course of this year as energy costs have stabilised and even started to reduce.

"However we are acutely aware of the impact that an extended period of high inflation has had on individuals, families, businesses and government.

"Our local economy has shown resilience and strength but we are continuing to monitor the effect of interest rates and the possible effect of global events on our community."