THE Treasury Minister has sought to reassure Islanders after inflation in the UK rose to 10.1% and further increases were forecast in Jersey.
Under-pressure UK households faced a worse-than-expected hit in July as food prices spiked and pushed inflation to another 40-year high, while the Island has seen inflation hit 7.9% as it grapples with its own cost-of-living crisis.
Deputy Ian Gorst said the government was ‘aware that high inflation increases the cost of living and impacts adversely on many Islanders’. He highlighted that inflation locally was lower than in the UK, but that the Fiscal Policy Panel – an independent group of economists that advises the government – had forecast further rises.
Deputy Gorst said: ‘In our mini-budget we have taken positive steps to put more money in people’s pockets by aiming to reduce social-security costs as soon as we can and increasing tax thresholds.
‘We have taken other steps, including increases in pensions and other social support, to further help Islanders manage inflation. This is a challenging time for Islanders, with many global pressures from which we are not immune.
‘However, I am confident that the government will continue to do all it can to reasonably provide support to the people of Jersey.’
Economists have warned that Britain could be on the brink of its longest recession in 30 years, with predictions of inflation soaring to 13% by October.
And the Island will feel this impact too in the coming months through higher credit-card bills, increased prices in the shops and a squeeze on wages, according to Ben Shenton, a senior investment director at Westminster Asset Management and vice-chairman of Age Concern Jersey.
A JEP Facebook post asking about prices in the Island attracted over 150 comments, with one Islander saying that ‘everything has gone up; my food bill is about 14% higher’.
Another said: ‘Everything in Jersey is getting more and more expensive. Have been in supermarkets where people are in a queue looking at reduced sell-by-date products.
‘If prices continue to rise well above the increase in wages, which is more or less non-existent for many, no doubt the families needing assistance from food banks will also dramatically increase.
‘Make sure you look out for your neighbours, especially the elderly, as they are the ones who will be too proud to ask for help or rely on charitable handouts.’
Others commented that rising rental prices were a worry, while many raised concerns about the cost of food.
