Inflation has dropped to 2.9% in March 2026, down 0.6 percentage points from February, according to the latest report from Statistics Isle of Man.
The Consumer Prices Index figure represents a continued easing of price pressures, though significant variations remain across different sectors.
Restaurants and hotels saw the largest annual increase at 7.9%, driven by catering costs which rose 8.2%. Food and non-alcoholic beverages along with education both recorded 4.9% rises. Within food, coffee and other hot drinks jumped 12.7%.
Private education fees increased by 9.0% over the 12-month period.
The Retail Prices Index, which uses a different methodology, stood at 3.4% for March 2026.
Pressures
Douglas Grant, CEO of Manx Financial Group and managing director of Conister Bank, said: “Inflationary pressures have been pervasive over recent years, and the global disruption to oil supplies is unlikely to be rectified soon.”
He added: “As a result, interest rates are likely to stay higher for longer, although the Bank of England will also be wary of depressing growth potential through hikes.
“On balance, the result will be lower growth and further pressure on the finances of individuals and businesses. As a lender, Manx Financial Group products our here to support customers through this difficult time.”
The only category to record a negative annual change was miscellaneous goods and services, which fell 0.8%.