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Rate of inflation falls to 3.2%

Treasury minister welcomes 'encouraging sign'

There's been a further fall in the rate of inflation on the Isle of Man to 3.2 per cent in March, a decrease of 0.3 per cent compared to February.

Treasury Minister Alex Allinson says 'prices are now rising at their slowest annual rate since August 2021 and the unbroken trend of a falling inflation rate since the turn of the year is an encouraging sign.'

He says: 'This time last year annual inflation stood at 9.2 per cent which put considerable strain on household budgets. Lower inflation maintains the purchasing power of people’s money.  It also brings stability and a better level of predictability, boosting confidence, which encourages spending and investment, fuelling economic growth.'

Minister Allinson says he expects 'further falls in inflation throughout 2024.'

Meanwhile, with the UK's inflation rate decreasing, heading towards the Bank of England's target of two per cent, he says his department is 'closely monitoring UK monetary policy, with many expecting a reduction in interest rates this year, which would make borrowing – including people’s mortgages – cheaper.'

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