Inflation

Key Points

• CONSUMER PRICES INDEX INCREASES (CPI)
• The annual rate of inflation as measured by the CPI increased in July 2017 and now stands at 4.6%, compared to 4.0% in June 2017.
• The rate of inflation has increased from June 2017, up by 0.6%, to 4.6% in July 2017.
• Transport costs continue to be the main contributory factor in July's rate of inflation, accounting for 1.0% of the rate of inflation. Air fares continue to be causing upward inflationary pressure, particularly those booked six weeks in advance as they remain within the school holiday period. Whilst petrol and diesel prices have fallen over the past 4 months, they still remain slightly higher than 12 months ago.
• Other significant contributors to July's rate of inflation are Recreation & Culture, Restaurants & Hotels, Food & non-alcoholic beverages and Miscellaneous Goods & Services. The cost of various goods such as pet care, sports equipment, leisure attraction entrance fees and the cost of holidays have all contributed to Recreation & Culture, along with increasing costs of eating and drinking at restaurants and bars.
• It is also noticeable that the additional costs resulting from a weakened exchange are being passed onto consumers for various groceries across a number of retailers which is resulting in upward inflationary pressure. Increasing costs of house and car insurance and cosmetics have also caused upward pressure within Miscellaneous Goods & Services.

The figures are published monthly by the Economic Affairs Division of the Isle of Man Cabinet Office. Full details with further breakdowns  are available in the downloadable document, which is updated monthly.