Worst is still to come, warns chief minister
THE latest rise in the cost of living of nearly 8% was expected and inflation has not yet reached its peak, Guernsey’s senior politician said yesterday.
Peter Ferbrache said that inflation in the Bailiwick was still too high, and islanders should not expect is to start to fall just yet.
‘There are limited things we can do as we are not a sovereign state, we are a market follower not a market maker,’ he said.
‘We will do our best to be vigilant and make life a little easier.’
Earlier in the month there were changes to income support benefits with the extended suspension of income limits for existing tenants until the end of 2024, and in January, pensions will be uprated to follow inflation or thereabouts, to assist islanders with the rising cost of living.
With the expectation of inflation continuing to rise, Deputy Ferbrache did not wish to speculate on the potential out-turn for the year-end.
He said everything was relative to world events, with big increases in food prices in the UK accounting for more than a quarter of the rise, and fluctuations continuing in energy, gas and oil prices, the continued war in Ukraine could make things worse further still.
Where the prices rose ... and fell
THE food group increased by 3% due to price changes for seasonal fruit and vegetables and increases in ready meals, meat and some dairy products.
The catering group increased by 2.7% and saw rises in the cost of takeaways, pub meals and school meals.
Higher prices for some shop-bought spirits and beers, and spirits and wines on licensed premises, caused a 1.9% increase in alcoholic drinks.
There were few changes in cigarette prices and no change on duty levels, so the tobacco group only increased by 0.3%.
The housing group increased by 1% due to mortgage interest payment and rent increases and rising prices in DIY and gardening items.
A 4.5% increase for the fuel and light group was driven by the higher price of electricity.
Household goods increased by 1.2% due to prices of carpets, pet food and living room furniture.
The 1.3% increase in household services was because of some increases in pet insurance, dry cleaning charges and private school fees.
Increases in items such as women’s jackets, children’s trousers and men’s jeans caused the 2.5% rise in the clothing and footwear group.
There was little change in the personal goods and services group, but rises in sanitary products and dental examinations resulted in a 0.2% increase.
The only category to decrease was the motoring expenditure group, which was down by 0.7% due to falls in the price of petrol and diesel.
Fares and other travel group saw a 1.1% increase due to higher prices for air fares, boats and bicycles, but a reduction in the cost of hire cars.
Higher costs for plants, toys and computer games led to a 3.7% increase for the leisure goods group.
Increased costs for overseas package holidays and in gym memberships caused the 2.4% increase in leisure services.
