Inflation in Guernsey hits 5.9%

St Peter Port Harbour
It is the highest annual percentage change since 2008 but it is still lower than the UK where inflation has reached 9.1%. Credit: ITV Channel TV.

Guernsey's inflation rate has increased to 5.9%, according to latest figures.

It is the highest annual percentage change since 2008 but remains lower than the UK where inflation has reached 9.1%.

The States of Guernsey says the figure is expected to remain above average for some time.

It comes as more islanders are feeling the pinch due to rising fuel and housing costs, as well as a general increase in the cost of living.

The war in Ukraine has also led to disruption to energy markets and global supply, though the impact of this has been felt less in Guernsey due to its connection to France's electricity grid.

In the UK, inflation is projected fall later in the year, which is likely to impact the Bailiwick.

Deputy Peter Ferbrache, President of the Policy & Resources Committee, said: “We are watching what’s happening to prices and the cost of living for islanders very carefully.

"While we’ve so far been better placed than the UK and many other jurisdictions to withstand the global pressures that are driving prices up, it still has a very real impact for Islanders who see and feel it in their household bills.  

"We in government cannot control all the factors affecting prices but we can influence some of them, and so we must keep it at the front of our minds in the decisions we make over these coming months.

"We must also separate out this rise in inflation, which we don’t expect to continue in the long-term, with some of the planning we must do for the provision of essential services in years and decades to come.

"We’re still set to see the significant changes to the make-up of our population, so that remains a serious challenge we must address.” 

Deputy Peter Roffey, President of the Committee for Employment & Social Security, added: “We understand that sharp increases in the cost of living put real strain on the budgets of those on lower incomes.

"The Committee for Employment & Social Security will be monitoring the situation as these higher than normal inflation levels  are expected to continue for some months.”