02 September 2009
The purpose of this report is to compare prices in Jersey, Guernsey and the UK by looking at the Retail Prices Index (RPI) for each jurisdiction.
Download comparison of consumer prices June 2009 (size 389kb)
Summary
In the year to June 2009 the all-items Retail Prices Index, RPI, fell by 0.4% in Jersey, by 1.6% in the UK and by 1.3% in Guernsey.
The decrease of 0.4% in the RPI in Jersey between June 2008 and June 2009 represents the first annual decrease seen in Jersey's RPI since the official series began in October 1948.
The effect of the introduction of GST (Goods and Services Tax) dropping out of the change in the RPI on an annual basis was the principal cause of the fall in the RPI from 2.1% in March 2009 to -0.4% in June 2009.
Lower Housing costs was the key downward contributor to the annual change in the RPI in Jersey, the UK and Guernsey, a result of lower mortgage interest payments, following the recent series of cuts in the Bank of England base rate.
Over the last year food prices have, on average, been rising at a similar rate in Jersey (4%), the UK (5%) and Guernsey (3%). The increase of 4% in Jersey represents the lowest rate of increase seen in the Island for two and a half years.
Direct food comparisons show that average meat prices were about 15% higher in Jersey than in the UK in June 2009 and the cost of fresh fruit and vegetables in Jersey were 25% and 14% higher, respectively.
Largely as a result of different rates of increase of impots and duties since June 2000, alcohol and tobacco prices have seen greater overall increases in Jersey and Guernsey than in the UK.
Pre-tax prices for alcohol, tobacco and motor fuels are higher in Jersey than in the UK: alcohol by over a quarter; cigarettes by 71% and petrol and diesel by around a half (50% and 46%, respectively).
Pre-tax prices of beer, whisky and petrol are slightly lower in Jersey than Guernsey; whereas the pre-tax price of tobacco is similar in both jurisdictions.
Further information
Statistics Unit
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