The latest inflation figures released by the Isle of Man Government show the annual rate of inflation as measured by CPI for the twelve months to January 2022 has increased even further to be extremely high at 6.4%.
“The consumer price index has risen by 6.4% over the last year. December’s inflation was extremely high, and January’s is even worse. This extremely high inflation is putting further squeezes on the cost of living,” said Michael Josem of the Manx TaxPayers’ Alliance.
“These higher costs will be putting particular pressure on households living on fixed incomes, and it is disappointing that this week’s Isle of Man Government budget did little to address the very high inflation levels.”
In recent months, the Government has imposed increased taxes on hospitality businesses, announced increased fuel taxes on construction, manufacturing and other businesses while ruling out any cut on aircraft passenger taxes. The Manx TaxPayers’ Alliance has published a series of proactive positive policies to address the Manx inflation crisis.
Inflation in the Isle of Man is even worse than in the United Kingdom, where Bloomberg reports:
U.K. inflation unexpectedly accelerated for a fourth straight month in January, a surprise that highlights a cost-of-living crisis that’s only set to worsen this year.
Annual price growth rose to 5.5%, a new 30-year high, driven by clothing and footwear, the Office for National Statistics said Wednesday. Both economists and the Bank of England had expected inflation to remain unchanged at 5.4%.
U.K. Inflation Overshoot Adds to Brutal Cost of Living Squeeze
Inflation is likely to increase the pressure on Manx households in coming months as the following come into effect:
- the Government’s gas price rises;
- the Government’s increased taxes on the hospitality industry flow through the economy;
- increased fuel taxes on construction and other industries.
“Fundamentally, inflation is caused by too much money chasing too few goods and services. The antidote to inflation is improving productivity through improving skills, education, training and investment in improved tools, while reducing supply constraints through efficient infrastructure and a low regulatory burden,” said Josem.