Isle of Man government rejects ferry firm's inflation claim

Sea transport prices have been blamed for a 14-year high in inflation

The Isle of Man government has rejected a claim by the island's ferry company that inflation figures were misleading.

A 14-year high of 10.8% was recorded in July, which was partly blamed on a 104% increase in sea transport prices.

Isle of Man Steam Packet Company disputed the way the figures had been worked out, as fares had not risen beyond 3.1% in the past year.

However, the government said the figures had been "calculated in line with established methodology".

In a statement the Cabinet Office said: "The July inflation figure has been calculated in the same way as in previous reports, dating back to 2018.

"It uses a methodology that was devised in consultation with the Isle of Man Steam Packet Company, with data provided by them."

The Steam Packet had argued the comparison of average prices in June 2021 when demand was low to demand this June, which saw the return of the TT races, was misleading.

The Cabinet Office said the inflation report highlighted the data had been collected during a period of high demand.

A spokesman said: "Government firmly rejects the assertion that the method used to calculate these figures is misleading."