Isle of Man Debates Phasing Out 1p and 2p Coins Despite Inflation Fears
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The Isle of Man is considering phasing out 1p and 2p coins due to the high cost of minting them compared to their face value. However, many residents fear this could increase inflation.
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The Isle of Man government has encouraged local businesses to voluntarily round prices to the nearest 5p to limit further production of low-value coins.
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Some Isle of Man residents and business owners think the coins are pointless and not used, especially by younger people, while others want to keep the coins to avoid price increases.
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The Isle of Man Treasury Minister says research shows scrapping copper coins does not necessarily cause inflation, though public perception is that it would.
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The economics of minting 1p and 2p coins no longer makes sense, as production costs now exceed the face value of the coins.