Figures released by the States Statistics Unit showed that the Retail Price Index was down on the previous quarter, mostly because of a drop in domestic fuel prices, and a fall in the cost of clothing and footwear.
The fall is good news for the cost of living, although earnings data is not expected to be out until August.
The RPI – the annual rate at which prices are increasing – stands at 1.7%. It has been hovering under the 2% mark since March 2013.
Statisticians say that big rises in fuel costs just over 12 months ago have now dropped out of the RPI calculation, leading to the drop.
In their statement accompanying the release they said: “The fall in the annual rate of inflation was driven by a reduction in domestic fuel and light costs: heating oil recorded a larger decrease in price over the latest twelve-month period; whilst increases in the price of electricity and gas in January 2013 have now dropped out of the change in the index on an annual basis.”
They said that there was a rise in household services (down to rises in phone charges, domestic services and fees), housing costs (rent increases in the public and private sectors) and food costs (fresh meat, fish and chocolate all increased in price).
