The latest inflation figures released today by the Isle of Man Government show the annual rate of inflation as measured by CPI for the twelve months to November 2021 has increased to be very high at 4.6%.
“Today’s figures shows that consumer prices have risen by 4.6% over the last year, and is further evidence that the Isle of Man Government should do something to ease the squeeze on the cost of living. These higher costs are putting more pressure on family budgets,” said Michael Josem of the Manx TaxPayers’ Alliance.
In the last three 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. While it is still early to prove direct causation, the increase in restaurant and hotels prices appears likely correlated with the Government’s increase in taxes on the sector, showing that Government decisions are likely contributing to high inflation.
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.