JERSEY’s consumer champion has warned that “families are struggling to make ends meet” after new figures revealed the rate at which prices are rising has increased after more than two years of falling inflation.
The annual rate of inflation increased to 2.6% in the year to June, up from 2.3% in March, according to the latest Retail Prices Index (RPI) report published yesterday.
It is the first time the rate has risen since December 2022, breaking a downward trend that saw the annual inflation rate fall steadily from 12.7%.
While the pace of price rises had been slowing since the Island recorded its highest inflation rate in over three decades in 2022, the latest figures from Statistics Jersey show that costs are now creeping up again, driven mainly by increases in leisure services, food, and household services.
Leisure services – which include off-Island holidays, entertainment, sport, and leisure fees – made the single biggest contribution to the annual rate, adding 0.6 percentage points.
Shop-bought food and services such as school fees, telephone and internet charges also pushed prices higher over the year.
Carl Walker, Chair of Jersey’s Consumer Council, said the pressure on food and energy costs is being felt widely by Islanders.
“Food is still worryingly expensive for Islanders. The price of food continues to go up almost weekly. Yes, it’s not going up by as much as it was a few years ago, but it’s still climbing, and families are continuing to struggle to make ends meet,” he said
He also added that energy costs earlier in the year are likely still having an impact across the economy.
“It’s important to remember that we saw price increases in electricity at the beginning of the year, which will have had a knock-on effect, because not only for domestic but every business and commercial user will have to pass that on to consumers also.”
While inflation has dropped significantly from its double-digit highs, Mr Walker warned that many Islanders are still struggling with the cost of everyday essentials – and that the need for support may be growing.
“The government recently increased the subsidy for doctors’ fees to make it cheaper for islanders to visit the doctor. But are we reaching a stage where the government needs to help islanders with their grocery shopping?”
“Food banks are still inundated, and they’re helping people where both parents are working and still struggling. Times are tough.”
Mr Walker added that careful shopping can still lead to meaningful savings, but acknowledged it isn’t always practical for everyone.
“You can save up to £15 to £20 on everyday items by shopping around. We accept it’s not practical to travel the Island to do your shopping, but it’s important that consumers educate themselves on where certain items are cheapest, so that when they’re passing those shops, they can pick them up and make savings.”
While most categories saw price rises over the past 12 months, there were falls in some areas, including household goods – such as furniture and appliances – and leisure goods like books and games.
Housing costs also continued to fall, mainly due to lower mortgage interest rates, which helped offset slightly the rate of inflation.
The Retail Prices Index is the main way inflation is measured in Jersey. It tracks how much the prices of goods and services bought by households have changed over time, and is often used as a measure of the Island’s cost of living.
The report also includes separate measures for pensioners and low-income households.
Over the past year, inflation for pensioner households rose by 3.8%, up from 3.3% in March.
For low-income households, the rate rose to 3.9%, up from 3.4%
Despite the uptick, the rate of inflation in Jersey, as measured by the RPI, was 1.5 percentage points lower than the UK’s comparable CPIH figure (Consumer Prices Index), which stood at 4.1% in June.
What’s gone up over the past year?
- Tobacco: up 8.6%
- Fares and other travel: up 7.1%
- Leisure services (e.g. entertainment, sport, holidays): up 6.4%
- Fuel and light: up 6.3%
- Catering (e.g. eating out, takeaways): up 4.3%
- Personal goods and services (e.g. toiletries, dental/medical/beauty treatments): up 4.3%
- Food (e.g. shop bought): up 4.1%
- Alcoholic drinks: up 3.9%
- Motoring (e.g. vehicles and petrol): up 3.5%
- Household services (e.g. school fees, phone bills, subscriptions): up 3.2%
- Clothing and footwear: up 1.3%.
What’s gone down over the past year?
- Leisure goods (e.g. books, games, gardening items): down 0.4%
- Household goods (e.g. furniture, appliances): down 0.9%
- Housing (e.g. rents and mortgage interest payments): down 1.4%
