Inflation on the up at 2%

Friday 21 October 2016

Jersey's inflation rate has gone up to 2%, according to the latest set of figures sent out by the States Statistics Unit - and it's set to go up even further. 2% is the highest figure since 2012.

The measure is for the year to September 2016, and is an increase of 0.5% on the June figure, which was 1.5%.

The increase was driven mainly by price rises in household services and tobacco, with fuel and light costs actually falling in the period. 

Economic Development Minister, Senator Lyndon Farnham commented:

"The increase from 1.5% to 2.0% was expected, and is in line with Fiscal Policy Panel forecast (average rate of 2.2% for 2016).

The increase is primarily due to faster annual increases in motoring costs (in particular petrol and diesel) and slower annual falls in fuel and light costs (particularly home heating oil) when compared with the previous quarter.

"Inflation is expected to increase over the next 12-24 months, due to the falling sterling exchange rate, which makes imports more expensive.

"While headline inflation is at its highest level since 2012, it remains low by historical standards. Recent statistics suggest a relatively positive picture overall - with historically low inflation, GVA growth in 2014 and 2015, record high employment and continued real earnings growth in 2016."