People were already feeling the pinch as the year-on-year rise in September 2022 was 10.4% – but the last quarter has heaped on another 2.3%.
Each of the categories at a glance…
Housing ↑ 24.4%
Every single spending group saw prices increase over the last year – but housing saw by far the greatest rise at 24.4%.
This was primarily due to the rising costs of mortgage interest payments following increases in the Bank of England Bank Rate over the year. However, the category also includes parish rates and rents.
Fuel and Light ↑ 22.7%
Heating and lighting up homes and properties also got significantly more expensive.
The percentage change between September 2022 and December 2022 alone was 8.3% – the highest rise of any spending category.
Household goods ↑ 14.4%
Food ↑ 14.2%
Motoring ↑ 12.3%
Among other items, this group includes motor fuels, whose prices rose steeply during the year, largely as a result of the war in Ukraine.
As of today, the Consumer Council’s Price Watch team records the average price of petrol as being 155.9p per litre, and diesel as 171.9p – up from 132.9p and 133.9p in January 2022.
Impact on the vulnerable
Islanders who may have already been struggling will also face further difficulties as a result of cost of living rises.
Inflation for pensioner households and households in the lowest fifth of income both increased by 10.3% and 8.5% respectively.
This is the largest increase in RPI Pensioners and RPI Low Income since December 2007, when these specific price indices were introduced in Jersey.
Worse than the UK…
The annual rate of inflation in the UK was 9.2%, according to the UK CPIH, which is comparable to Jersey’s RPI Index – meaning islanders are 3.5% worse off than their UK counterparts.
The most significant difference between Jersey and the UK was in housing, with the UK CPIH housing group increasing by 11.7% over the 12 months to December 2022, compared to Jersey’s 24.4%.
Jersey’s next inflation report, which will cover up to March 2022, is scheduled to be published on 26 April 2023.
Click HERE to read the full RPI Index report.