Cost of living rate at six-year low point

Friday 23 October 2015

Inflation has hit a six-year low, dropping to just 0.1%.

Drops in prices of fuel, leisure goods and clothing dragged the RPI stats down – although there were increases in the costs of housing and household services.

The news is likely to be welcomed by the Council of Ministers, because it reduces the impact of the pay freeze that they have placed on public sector employees in real terms.

The underlying rate of inflation – removing the impact of interest rates – has been on a steady downward trend since the middle of 2008.

This morning’s figures, published by the States’ Statistics Unit, mean that Jersey has a significantly lower inflation rate than the UK and Guernsey.