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The rate at which prices are increasing is the lowest since March 2022, latest inflation figures have revealed.
During the 12 months to this March the Retail Prices Index (RPI) for Jersey increased by 5.7% – down from the inflation figure of 7.5% reported in January.
And the rate has nearly halved since the 10.1% reported in September 2023.
March 2022, when the rate was 6%, marked the last time we saw a figure this low – and that was before inflation rose to double digits for the first time in three decades in September 2022.
Since that spike, it has fallen steadily.
The latest Retail Price Index (RPI) report, released this morning by Statistics Jersey, shows costs are still rising – but at a much slower rate than they have been in previous years.
Housing remains the biggest driver of inflation still, owing to the increases in the cost of mortgage interest payments – but, in a turn of events, it is also the biggest driver of the decrease in the inflation rate since the last report.
The recent stall in the housing market, and a slight relief for mortgage rates, could have contributed to that decrease.
Express took a look at the latest statistics...
Housing ↑ 11%
In addition to other items, this group contains Parish rates, Rents, and Mortgage Interest Payments, the latter of which was affected by increases in the Bank of England Bank Rate over the last twelve months and contributed most of the change in this group.
Food ↑ 3.7%
The prices in this group increased less over the twelve months to March 2024 (up 3.7%) than over the same time period to December 2023 (up 5.9%).
Alcoholic drinks ↑ 5.4%
Household services ↑ 5.1%
Fares & other travel ↑ 4.5%
Leisure goods ↑ 5.5%
Leisure services ↑ 9.4%
Impôt duties went up in January 2023, which Statistics Jersey observed had contributed to the overall annual change.
Personal goods and services ↓ 0.8%
Motoring ↓ 0.5%
The report also looks at how vulnerable islanders – such as pensioners and those on low incomes – are faring.
Known as RPI Pensioners, the specific measure for older islanders calculates the rate as if affects pensioner households.
RPI Low Income calculates how it affects those in the lowest fifth of household income.
Over the 12 months to March 2024, RPI Pensioners increased by 4.1% – a decrease from 5.1% reported in January.
Meanwhile, RPI Low Income increased by 3.8% – down from 4.7%.
While these rates are both decreases from the last report, those on the lowest incomes will still be facing rising costs as we head into summer.
The annual changes were all smaller, so that means rising prices are slowing at a slower rate.
According to the report, the rate of inflation in Jersey over the 12 months to December 2023 was 1.9% higher than in the UK.
The report noted: "Costs associated with owning and occupying one’s own home are reflected through a rental equivalence method in the UK CPIH, hence its rate of increase is less directly affected by changes in the Bank of England Bank Rate, than the Jersey RPI."
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