Jersey’s inflation remains low but expected to rise

On October 21, 2016, in The Economy, by Lyndon-Farnham

The increase in Jersey’s inflation from 1.5% to 2.0% was expected, and is in line with Fiscal Policy Panel forecast (average rate of 2.2% for 2016).

The increase is primarily due to faster annual increases in motoring costs (in particular petrol and diesel) and slower annual falls in fuel and light costs (particularly home heating oil) when compared with the previous quarter.

Inflation is expected to increase over the next 12-24 months, due to the falling sterling exchange rate, which makes imports more expensive.

While headline inflation is at its highest level since 2012, it remains low by historical standards. Recent statistics suggest a relatively positive picture overall – with historically low inflation, GVA growth in 2014 and 2015, record high employment and continued real earnings growth in 2016.

Read the full report @ Retail Price Index (Inflation)