INFLATION fell by 0.1% in the quarter to the end of March, according to figures released yesterday.
The total of 4.8% was the same as that for the corresponding period last year but 0.1% lower than at the end of December.
Chief Minister Mike Torode (pictured) welcomed the fall but added that many things seemed to be getting more expensive. ‘But the cost of most of these items is beyond our control, with fuel and food now significantly more expensive, which has a knock-on effect on travel and eating out,’ he said.
‘In this climate it is somewhat reassuring to see that our inflation remains relatively static. As the States, we are limited in what we can do to influence prices. It will be external conditions which will primarily dictate our rate moving forward.’
Deputy Torode did not believe the current rate would prove detrimental to the zero-10 tax strategy.
The Guernsey figure has now been between 4.7% and 4.9% over the last five quarters, a period of stability unparalleled during the last few years. The RPI figure tends to be cyclical, with March traditionally seeing the greatest quarterly change.
The RPIX calculation, which excludes mortgage interest payments, rose during the quarter from 3.9 to 4.3%, the highest for five years. It continues to run ahead of the UK and Jersey, which had figures of 3.5% and 2.9% respectively.
But the quarterly rise in that index was lower than the 1% increase seen in the December quarter.
The impact of housing costs on the RPI calculation fell for the first time in a quarter since 2005 but the annual figure of 5.1% accounted for 1.2% of the total 4.8%.
The biggest hikes in the quarterly figures came from alcoholic drink at 6.2%, fuel, light and power at 7%, fares and other travel at 7.3% and eating out at 6.4%. The last mentioned contributed 0.4% to the total quarterly increase of 2%. The only decrease in the quarter came in clothing and footwear at -6.1%.
The fuel, light and power category has risen by 17.1% in the last year, the biggest increase in all groups. That led to its 0.8% contribution to the annual total.
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2 Article Comments
The rest of the world suffers from increased inflation.
Time for Guernsey to tell the world how the same phenomena does not effect the island!!!!!!
The media (to be fair mainly radio) seem to have missed the fact that this still means we have high inflation that is above many other western nations. Prices are still rising at 4.8%.