According to the latest gov figures, inflation in May rose 2.7% from 0.8% to 3.5%. That’s a big old jump, as the graph below shows, but the actual detail behind the rise is more interesting.
Since we all weirdly embraced the ideals of a staycation, the number of people travelling abroad fell dramatically. So dramatically in fact that airlines and cruise liners have been parked up for over a year, wondering what they did wrong and why they’re not full of excited holidaymakers.
As a result of this air and sea travel was removed from the inflation figures in November 2020. But since people have decided that another year of walking around the north of the island just isn’t for them, May’s inflation rate once again does include air and sea travel.
The Only Way is Up
Transport was, unsurprisingly the largest contributor to the increase in inflation, air travel is up 37.2% in one year, but it isn’t as simple as saying well duh the planes are flying as pretty much everything in the sector rose. Driving lessons have gone up 16.7% while petrol and oil rose 9%.
Away from travel, the second biggest contributor to the increase in inflation is housing, water, electricity, gas and other fuels. Of these, oils and what the gov calls ‘other fuels’ rose a staggering 45.2%.
The other notable increases are pork (seriously) which is apparently up 11%, kennel fees are up 14.3% and domestic help is up 18.2%, though honestly if you can afford Carson, you can afford an increase.
What Goes Up Must Come Down
Now, not everything is up. In a big win for Gef, the cost of tea has dropped 11.4% in the last 12 months and beer is down 8.08%. Alongside this, multivitamin tablets are down 11.5%, women’s outerwear 8.09%, children’s outerwear 6.6% and repairs and maintenance 4.6%.
How Is It All Worked Out?
Inflation measures the increase in the cost of living, expressed through the prices paid for stuff that the average household buys and uses. On the island, the Economic Affairs Division (catchy title) collects about 1,000 prices for some 500 items through a combination of mailing out forms to participating businesses, visits to shops, ringing people and browsing online shopping sites. Combining the movements in all the prices together results in an index value and movements in that value represent the inflation rate.