Isle of Man inflation eases slightly to 2.8% in October

Rising restaurant, food and tobacco prices continue to drive inflation, while energy costs help offset increases

Inflation on the Isle of Man edged down to 2.8 percent in October, according to the latest figures from Statistics Isle of Man.

The figure is down by 0.1 percent compared with September.

The report shows that ‘restaurants and hotels’ was once again the strongest upward pressure on prices, rising 7.8 percent over the year. Within that category, catering costs increased 8.1 percent.

Food and non-alcoholic drinks and tobacco also made notable contributions, each increasing 5.6 percent annually. Beef prices rose sharply, up 13.4 percent, while tobacco products increased 7.5 percent.

Soft drinks, coffee, other hot drinks and a range of everyday food items also saw significant rises.

There were, however, areas of downward pressure. The ‘health’ category fell by 0.3 percent, with multivitamin tablets (down eight percent), sticking plasters (down 4.8 percent) and ‘other’ medical items decreasing in price.

Energy-related movements also helped dampen inflation: gas prices dropped eight percent, and oil and other fuels fell 13 percent compared with 12 months prior.

Transport inflation eased to 1.6 percent, reflecting lower petrol and oil prices, although air travel rose five percent.

Recreation and culture showed no overall annual change, while communication costs have risen four percent.

The Retail Prices Index (RPI) - which uses a different methodology and ‘basket’ - recorded a 2.6 percent annual increase. Housing costs within the RPI rose 5.4 percent, and catering 8.1 percent, while leisure goods fell sharply by 10.9 percent.

Statistics Isle of Man collects around 1,000 prices across 500 items each month to calculate the indices.