The island’s rate of inflation has dropped significantly, according to figures released today by the government.
The cost of living went up by just 0.2 per cent over the 12 months to December 2014 when measured by the consumer prices index (CPI).
A month earlier it stood at 1.1 per cent.
When measured by the retail prices index (RPI), which includes mortgage interest payments and household expenditure such as buildings insurance, inflation hit 2.2 per cent, down from 3 per cent.
Petrol and oil were 7.9 per cent lower than the year before. January’s {http://www.iomtoday.co.im/news/isle-of-man-news/price-of-petrol-drops-again-1-7044027|drop in prices at the forecourt} will make an impact on official inflation figures next month.
While air travel is 9.7 per cent cheaper (possibly a reflection of fewer services being available) sea travel inflation is running at 9.2 per cent.
Food and non-alcoholic beverages are 3 per cent cheaper than a year earlier while rent was 4.6 per cent more expensive.
While oil and ‘other fuels’ dropped 16.1 per cent, gas was 2.8 per cent dearer.
The UK’s December rate has not yet been published.
{http://www.iomtoday.co.im/news/uk-news/osborne-hails-record-inflation-low-1-7046986|However, it is expected to fall below 1 per cent, as this story on our international news section said earlier this week.}