Manx CPI crept up half a percentage point in December
Treasury says a rise of 0.5 percent in Isle of Man inflation between November and December was expected, describing month-to-month movement as sometimes "bumpy".
New figures show CPI at 3.3 percent, with restaurants and hotels the single biggest contributor, up more than eight percent over the past 12 months.
Minister Alex Allinson says that suggests many hospitality businesses have tried to absorb rising costs, but have ultimately been forced to increase prices.
However, he remains optimistic inflation will stabilise as the Island moves towards the end of 2026:
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