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 March 2022 has increased to be extremely high at 6.7%. This new level equals the record amongst the current historic datasets published by the Isle of Man Government dating back to January 2008.
“The consumer price index has risen by 6.7% over the last year. December’s inflation was extremely high, January’s was worse, February’s was worse, and now March is even worse than that. This high inflation is bad, and will get worse due to the Isle of Man Government’s high-inflation budget announced earlier this year,” said Michael Josem of the Manx TaxPayers’ Alliance.
“Instead of merely “monitoring” this economic crisis, the Isle of Man Government should have taken the advice of the Manx TaxPayers’ Alliance earlier this year and taken proactive action to ease the squeeze on the cost of living. Blind Freddy could have seen the impending cost of living crisis, yet 23 out of 24 MHKs voted for the high-inflation budget which is making the cost of living crisis worse,” said Josem. “As we said at the time, is disappointing that the Isle of Man Government budget did little to address the very high inflation levels, and instead, is making it worse.”
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 led the Isle of Man in proposing a series of proactive positive policies to address the Manx inflation crisis.
The high inflation policies of the Isle of Man Government is correlated with higher inflation here than across, where Reuters reports:
British inflation shot up faster than expected last month to hit a new 30-year high, worsening a historic squeeze on household finances that finance minister Rishi Sunak is under pressure to ease in a budget update later on Wednesday.
The Office for National Statistics said consumer prices rose by 6.2% year-on-year in February after a 5.5% rise in January, its highest rate since March 1992.UK inflation hits 30-year high of 6.2% as Sunak readies response
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.
- existing home leases come to a conclusion and are re-set to higher levels.
“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.