A REVIEW of grocery costs in the Channel Islands was formally announced today – but the regulator has cautioned people not to expect costs to fall as a direct result.

The aim of the study is to investigate the costs involved in the supply and retailing of groceries in Guernsey and Jersey and to provide consumers with greater transparency as to the reasons for the higher prices here.

If these are not commercially justified, the Channel Islands Competition and Regulatory Authorities will make recommendations to Commerce and Employment in Guernsey and Economic Development in Jersey on measures that would achieve better outcomes for consumers.

‘We intend to focus on investigating what causes differences in prices and to examine the extent to which these differences can be explained and justified,’ said chief executive Andrew Riseley.

‘The main aim of the study is to provide more transparency to consumers. It is important to note that CICRA does not have the powers, under the competition laws in either island, to require that retailers reduce their prices.’