Treasury Minister Dr Alex Allinson MHK has welcomed a further fall in the rate of inflation in the Isle of Man to 3.2% in March, a decrease of 0.3 percentage points compared to February as measured by the Consumer Prices Index (CPI).
Dr Allinson said:
'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.
'This time last year annual inflation stood at 9.2% 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.'
He added:
'I know that some in our community are still feeling the pinch but I expect we will see further falls in inflation throughout 2024. The UK’s inflation rate is also decreasing, heading towards the Bank of England’s target of 2%. The Treasury 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.'
