Island inflation 'no surprise' says Treasury Minister

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Over the past 12 months island fuel and light prices have risen by 8.6% and food by more than 8.1%

The rising cost of island living has come as 'no surprise', according to the Isle of Man Treasury Minister, Anne Craine.

Official data shows an increase in inflation from 5.5% in December 2010 to 6.0% in January 2011.

The figures also reveal the annual rate of inflation has increased from 4.9% to 5.8%.

Mrs Craine said: "With prices still rising there seems little immediate prospect of any significant relief".

She added: "Rising inflation was taken into account in preparing this year's Budget, which includes a 7.7% increase in the Personal Allowance Credit for the least well off in our community".

In her budget speech on 15 February Mrs Craine confirmed that there would be no pay rises within the public sector despite rises in inflation.

She said: "This has not been an easy budget. Inflation is pushing the cost of living up so without pay rises people are actually taking a pay cut.

"It is not something we are comfortable with but unfortunately at the present time pay rises would mean job losses."

Over the past 12 months fuel and light prices on the Isle of Man have risen by 8.6%, fares and travel costs by about 10% and food by more than 8.1%.

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