Isle of Man ferry firm disputes claim fares fuelling inflation

The Steam Packet Company has argued official inflation figures are "misleading"

The Isle of Man's publicly-owned ferry company has disputed a claim by the Manx government that travel costs have contributed to record inflation.

A 14-year high of 10.8% was recorded in the 12 months to July, a rise blamed on rising energy costs and a 104% increase in sea transport prices.

The Isle of Man Steam Packet Company said this was misleading as fares had not risen beyond 3.1% in the past year.

The price comparisons used "did not represent normal trading", it added.

A spokesman for the company said the calculation compared average prices for June 2022 - when demand for TT travel was high - with June 2021, when "traffic volumes stood at just 10% of 2022 levels".

This led to an "anomaly" in the inflation figure because a "mix of fares" were assessed rather than typical ferry prices, he added.

A doubling in marine fuel costs has led to a surcharge of £2.25 for foot passengers and £1.50 for vehicles, which the ferry company said was a "small" part of the overall fare.

The ferry firm has also absorbed £2.5m in fuel costs by holding over TT 2022 bookings at 2019 price levels to retain TT business during the pandemic, the spokesman added.

The Isle of Man government has been contacted for a response.

The dispute emerged after the island's saw its highest rate of inflation since 2008 at 10.8% for July, surpassing a 40-year high of 10.1% recorded in the UK for the same month.