A FALL in the rate of inflation in Jersey has been welcomed by the government.
The Island’s Retail Prices Index rose by 3% in the 12 months to September, according to new figures released by Statistics Jersey.
This was down from the 5% overall rate of inflation reported in July, which decreased from 5.7% in the previous quarter.
In a statement, the government said the fall in the rate of inflation was “in line with forecasts and is welcomed”.
“It compares favourably with the figure seen in Guernsey, but it is marginally higher than in the UK,” the statement added.
The rate of inflation in Jersey over the 12 months to September 2024 was 0.4 percentage points higher than that of the UK, with the Jersey RPI broadly comparable to the UK’s Consumer Prices Index, which increased by 2.6%.
However, when compared with rates which do not include housing costs – Jersey’s RPI(X) of 3.5% and UK CPI of 1.7% – the Island’s figure is around double that of the UK.
The government statement added that the upcoming budget, which is due to be debated next month, aimed to help bring inflation down further.
“To help bring inflation down and to help Islanders and businesses with costs of living, budget 2025 proposes no increase in alcohol and fuel duty. A first step towards the adoption of a Living Wage for all employees – with a support package for employers – is also scheduled for implementation from April 2025.
“Changes in the Bank of England base rate directly feed through to Jersey’s RPI. The reductions forecast would exert downward pressure on Jersey’s RPI.”
The Bank of England cut its base rate from 5.25% to 5% in August this year but borrowing costs remain high for Islanders.
Jersey Consumer Council chair Carl Walker said that it was “great to see the RPI back down to normal levels of stability”.
But he warned: “It is important to remember we are already in a very unaffordable way of life and it will take a long time to recover.”
