Deflation ‘is almost over’

Saturday 14th November 2009, 2:29PM GMT.

Andy Sloan GUERNSEY will move out of deflation by the end of the year, the States’ economist has predicted.

And inflation could jump to about 3.5% by June.

The Policy Council has released its first inflation outlook bulletin and Dr Andy Sloan has forecast that the island will soon move back into positive RPI after being in deflation since the start of the year.

He believes that RPI, reflecting the price of a ‘shopping basket’ of 2,000 everyday items, could stand at 0.9% when the fourth-quarter figure for 2009 is published.

‘This trend is likely to continue for at least two quarters as RPI “bounces back” from unprecedented negative rates,’ he said in the bulletin.

Dr Sloan (pictured) and his team predict RPI will then stabilise at about 3.7% for the remainder of 2010.

He acknowledged that the predictions were not an exact science.

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1
anon

November 17, 2009 at 11:08 am

guernsey is comming out of deflation yeah right maybe if there wasnt so many idiots over there maybe peps would think bout living on ur little town of bedrock i mean guernsey is on nearly every website for trouble makers and peps over there who move away from that island tell other peps bout troube that is over there so u no where pep go now jersey cus they dnt like trouble the minute they get of a boat or plane

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2
Paul

November 17, 2009 at 12:13 pm

anon
Top post mate. It would also be nice to hear your views on the legal high threads!!!

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