EASING food price inflation – which has helped drive a slight fall in the Island’s overall rate – is expected to continue, according to one of the Island’s main supermarkets.
Coop chief executive Mark Cox said any price reductions for goods from suppliers were being passed on to customers, which he described as “good news ahead of the festive season”.
An easing of food inflation was among several factors that contributed to a 0.8% drop in overall inflation.
“Overall prices in this group increased by 10.0% over the twelve months to September 2023, compared to an increase of 15.0% over the same period of time to June 2023, contributing -0.5 pp to the change in the rate of increase of the RPI,” the latest report from Statistics Jersey stated.
The falling rate of inflation for food means that prices are still rising, but at a lower rate.
In a statement, Mr Cox said the figures “demonstrate that food inflation is falling”. It’s positive for consumers that inflation has dropped a little, on a real positive food price inflation has dropped 5% since June, dropping from a high of 15% to 10%.”
He continued: “We expect this trend to continue over the near future, although food inflation will remain relatively high in the short term, we continue to receive cost price decreases from suppliers, and we are passing on all cost price reductions to members which is good news ahead of the festive season approaching.”
However, he added: “The watch out remains on fuel pricing which remains unstable and has the potential to impact costs should it continue to rise.”
The decrease in Jersey’s food inflation rate was also predicted by the British Retail Consortium earlier this year.
In June, Harvir Dhillon – an economist for the trade association – said that, as the equivalent UK figure had fallen slightly in April, the Island’s rate would hopefully “follow suit in the coming months”.
A spokesperson for Waitrose also said the Island was seeing “signs of deflation”.
“We’re continuing to do everything we can to support our customers with the cost of living – working hard with suppliers to keep prices down, without compromising on quality or our high animal welfare standards,” the spokesperson added.
