Cost of living is on the rise in Jersey

Thursday 13 April 2017

The cost of living in Jersey is on the rise with inflation hitting 2.9% in March 2017, the greatest annual increase in nearly five years, and Islanders will be feeling it most on the aisles of the supermarket.

In a report released by the States of Jersey Statistics department this morning increasing food prices, the cost of the motoring related goods, household services and fuel and light expenses have been the driving factors behind the increased inflation.

In addition to an annual increase of 2.9%, the RPI saw a quarterly increase of 1.8% between December 2016 and March 2017- the highest quarterly increase since June 2011 when GST was increased from 3% to 5%.

Inforgraphic provided by the States of Jersey Statistics Department 

Arguably it's at supermarket checkouts that the rise in inflation is being felt most.

Food prices have risen 4% in the last three months, a figure that Duncan Gibaut, Head Statistician at the States said was “quite a considerable quarterly increase.” 

Speaking of the rising food prices, Helen Boys from the Statistics Unit, said: “That’s the greatest quarterly increase we’ve seen for about nine years and there was increases in fresh fruit, sweets and chocolate, soft drinks, fish, sugars and preserves”

However whilst those food groups saw an increase in price, the cost of butter and vegetables, both fresh and processed, fell over the last quarter. 

Alongside rising food prices, fuel and light, household services and motoring groups were the largest contributors to the overall increase whilst clothing and leisure goods attempted to balance the increase by giving small downward contributions.

 Provided by the States of Jersey Statistics Department 

Explaining the reasons for increasing inflation by category Ms Boys said: “domestic heating oil prices increased by 15 pence per litre over the year.” This price increase caused the fuel and light category to drive the rate of inflation up. 

She added: “We’ve got household services, that increased by 9%- that was across the board so that includes school fees, postal charges, telephone charges, domestic services like cleaners etcetera.”

When comparing with our UK counterparts, similar quarterly rates of inflation were seen as the UK noted a 1.8% quarterly increase compared to a 1.9% here in Jersey.  

However, their annual rate of increase was less than Jersey at just 2.4%.

The UK saw a similar increase rate with regard to the price of food. However, the cost of household services only rose 3% in the UK compared to a 9% rise here in Jersey and fuel and light expenses increased only 2% on the mainland, a notable difference to the 10% increase seen in Jersey over the course of 12 months.