INCREASING food prices and mounting household bills are forcing Islanders to change how they shop – making more trips, buying less, and chasing deals – just to keep up with the basics, as new figures confirm inflation is on the rise again in Jersey.
Data published this week has revealed the Island’s annual inflation rate rose to 2.6% in June, up from 2.3% in March – the first increase in more than two years.
And while overall price rises are smaller than the double-digit inflation seen in 2022, the financial strain on families, pensioners and low-income households is mounting once again.
The Treasury Minister has described the rise as only a “slight concern” – but those working on the ground have spoken of working parents skipping meals and turning to food banks as they struggle to make it to payday.
It’s a pattern not only seen by charities but also by one of Jersey’s largest retailers, which has said that shoppers are already changing their behaviour in response to the growing pressures on household budgets.
Mark Cox, chief executive of the Channel Islands Co-op, said: “We know rising food prices are a real worry for many, and we’re working hard to help our members wherever we can. Jersey isn’t immune to rising costs coming from challenges in the UK and across global supply chains, and food inflation is something many communities are facing right now.
“The cost of fresh produce, energy, and key ingredients like butter, coffee, and meat have all gone up, alongside higher National Insurance and National Living Wage costs for UK producers. These pressures are pushing up prices, but we’re doing everything we can to help.”
Mr Cox said shoppers are adapting their habits in response, “popping in more frequently, and making the most of promotions” to control their spending.
“Promotions now account for a bigger share of our sales as members look for value with every shop, and we’re working hard to keep these offers coming to help them save,” he added.
“We know the pressures our members are facing because we’re here, living it too, and we feel it just the same. That’s why we’re committed to supporting our members and customers through these challenges, investing in pricing, and working to provide value in every aisle.”
What is driving costs up?
While the pace of price rises had been slowing over the last couple of years since the Island recorded its highest inflation rate in decades, the latest figures from Statistics Jersey show inflation is picking up again – fuelled by rising costs in leisure services such as holidays and sport, as well as food and household bills like school fees and telecoms.
Catering (such as eating out and takeaways) was up 4.3% over the past year, with shop-bought food up 4.1%. Alcohol, motoring and personal goods also saw above-inflation increases, while housing costs dipped slightly due to lower mortgage interest payments.
For many Islanders, however, it’s the weekly essentials – groceries, fuel, and basic services – that are getting harder to afford.
“Families are having to make difficult choices”
That upward trend is being felt acutely by local families, said Yvonne Corbin, chief executive of Caring Cooks.
Her charity, which provides meals and food education to families across the Island, is already struggling to meet demand.
“Families are having to make difficult choices about what they buy, and healthier options often don’t make the cut,” she said. “It’s not just food either – activities like swimming, sports clubs and after-school sessions are becoming out of reach for many.”
“In just three days of running the Spud Truck this summer [a mobile van providing free hot meals during school holidays], we’re already struggling to meet demand. It’s the busiest since we launched last summer, which is very telling. On Children’s Day [a free annual event last week with family activities], we ran out of fruit very quickly, which says a lot about how expensive even the basics have become.”
“We know parents are skipping meals so their children can eat. That shouldn’t be happening.”
She continued: “There’s only so far we can stretch things, and while we’re doing all we can through our food programmes and summer initiatives, demand is outpacing what’s available and we are having to double up on food.
“If we’re serious about prevention, we need to stop treating food and physical activity like optional extras. These are essentials. Removing GST from food would be a good start. So would broader, joined-up support that helps families before they reach crisis point.”
“Times are still tough”
Consumer Council chair Carl Walker also warned that food remains “worryingly expensive” for many Islanders.
“The price of food continues to go up almost weekly,” he said. “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 also pointed to knock-on effects from electricity price hikes earlier this year, which he said continue to ripple through both households and businesses.
“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 consumers can sometimes save £15–£20 by shopping around, but accepted that it isn’t an option for everyone.
“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.”
“It’s a gradual increase in all the staples”
Charities working on the front line are also reporting increased pressure on food banks – not just from those out of work, but from people in steady employment who are running out of money before payday.
Patrick Lynch, chief executive of Catholic charity Caritas, said: “Things are just that much more difficult. It’s a gradual increase in all the staples, and that’s on top of the incredibly big rises in 2022 and 2023 – and those were increases that meant people just couldn’t afford things,” he said.
“So any increase now is making it even harder because salaries aren’t following those rises in costs for people. The time in the month when people get to zero is becoming earlier and earlier.”
He also said that food bank use peaks around weeks three and four of the month “because people with the greatest will in the world, they don’t want to come to food banks, and they’ll only come when they run out of money.”
“We obviously will try to help everyone, but that doesn’t take away from it being the government that should have the responsibility for doing it.”
“The big message from us is for the government to make good on the proposal to move the minimum wage to parity with the living wage, because that would give people more money in their pockets to be able to meet some of the costs.”
At Grace’s Trust, the story is much the same. Founder Vini Jones said they’ve already helped more than 100 households this year – and expect to see many more by winter.
Mr Jones said around 40% of people they help only come once a year, which, he said, suggests many are just about managing but hit crisis points from time to time.
“Nobody uses a food bank for fun,” he said. “We just want to be able to offer somewhere where people feel understood.”
Pensioners hit harder
Pensioners, too, are facing challenges, with their rate of inflation currently running even higher than the general population’s.
Ben Shenton, Chair of Age Concern Jersey, said: “The latest rise in inflation is deeply concerning for older Islanders, particularly as pensioner households are experiencing a higher inflation rate of 3.8%,” he said.
“Many are already struggling with the cumulative impact of rising food, energy, and leisure costs on fixed incomes.
“This return to increasing inflation risks deepening financial insecurity and social isolation among Jersey’s elderly population.
“Age Concern Jersey continues to support older people through these challenges, but we urge policymakers to prioritise targeted support to ensure our ageing community can live with dignity, security, and peace of mind.”
“It is a slight concern”
Responding to the figures, Treasury Minister Elaine Millar said: “It is a slight concern to see inflation rising once more, but we’re thankful that the numbers remain relatively low compared to recent years.”
“We are seeing pressures build from abroad, as was shown with recent increases in UK inflation, but we must also be wary of on-island inflationary pressures.”
Inflation snapshot
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.
According to the latest RPI report:
- Leisure services prices rose by 6.4%
- Food rose by 4.1%
- Catering (including eating out and takeaways) rose by 4.3%
- Alcoholic drinks rose by 3.9%
- Household services (like telecoms and school fees) rose by 3.2%
- Housing costs fell by 1.4%
- Household goods and leisure goods also recorded small falls
