26 January 2024
Statistics Jersey have today published the December 2023 Retail Prices Index report.
The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter to quarter in the price of the goods and services purchased by an average household in Jersey.
The December report shows:
- During the twelve months to December 2023 the All Items Retail Prices Index (RPI) for Jersey increased by 7.5% to stand at 228.1 (June 2000 = 100)
- the twelve month increase in the RPI to December 2023 was less than that to September 2023 (10.1%); hence the annual rate of inflation decreased by 2.6 percentage points (pp) since last quarter
- a few groups contributed to the decrease in the annual rate of inflation, notably the Housing and Food groups
- prices in most groups increased over the twelve months to December 2023. These increases were similar to or less than those over the twelve months to September 2023, which resulted in an overall downward contribution to the annual rate of inflation
- Housing was the price group that made the largest contribution to the annual rate of inflation, contributing +3.8 pp to the rate, driven by increases in the cost of mortgage interest payments. The overall price change in this group was lower over the twelve months to December 2023 compared with the twelve months to September 2023, hence its contribution to the change in rate of the RPI was -1.9 pp
- the twelve month increase in the RPI to December 2023 was smaller than a year ago (12.7% in December 2022)
- the change in RPI(Y) measures underlying inflation. RPI(Y) increased by 4.5% over the twelve months to December 2023. This was 0.8 pp smaller than the September 2023 rate (down from 5.3%)
- over the twelve months to December 2023:
- RPI(X) increased by 4.7%
- RPI Pensioners increased by 5.1%
- RPI Low Income increased by 4.7%
- in December 2023, the annual changes in RPI, RPI(X), RPI(Y), RPI Pensioners, and RPI Low Income were smaller than those in September 2023
- the rate of inflation in Jersey over the twelve months to December 2023, as measured by the RPI, was 3.3 pp higher than the UK CPIH, which is the broadly comparable headline rate of inflation for the UK. Costs associated with owning and occupying one’s own home are reflected through a rental equivalence method in the UK CPIH, hence its rate of increase is less directly affected by changes in the Bank of England Bank Rate, than the Jersey RPI.
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