Mind your shopping baskets: inflation rate soars to highest level in five years

Friday 20 October 2017

The latest inflation rate statistics are out, and it's bad news for shoppers' supermarket baskets: food prices suffered their highest rise in three and a half years.

The latest RPI data from the States Statistics Unit shows that there was a 3.1% increase overall in prices over the year to September 2017. It was the highest recorded rise in five and a half years.

But the rise was even greater for the vulnerable groups of pensioners and those on low incomes - they felt an increase 0.2% higher at 3.3%.

Most affected were household services at 7.8% - a likely effect of increased school fees in September, and higher postal, telephone and domestic services charges.

Increased impôts duties put tobacco in second place, with price rises of 5.5%.

Pictured: A breakdown of inflation by spending group. (Statistics Unit)

The price of motoring equipment was 4.4% greater than 12 months earlier, with the prices of petrol and diesel 9p and 8p per litre more.  It is expected that this is also a consequence of rising insurance and servicing prices.

Food, meanwhile, increased by 2.5% - the highest recorded rise since March 2014. Some fresh meats and fresh fruit did decrease slightly in price during the same period, but barely a food area was left untouched by the increase, with rises observed in the price of fresh vegetables, cereals, bread, milk, biscuits and cakes, sweets and chocolate and teas and coffee.

The news will come as a blow to shoppers, who had previously enjoyed falling prices throughout 2015 and 2016.

Catering came in shortly after at 2.3%.

Pictured: Petrol and diesel prices increased by 9p and 8p per litre respectively.

It’s also 3.3% more expensive to go on holiday or take part in entertainment or recreational activities now.

Housing and alcoholic drinks were the most modest increases, both rising by 1.6%. Housing was partially driven by higher rents and household insurance, with parish rates also a contributing factor.

Leisure goods and clothing and footwear, meanwhile, actually saw prices decrease at -0.4% and -0.5% respectively.