Inflation rate heading down

Wednesday 24th October 2007, 12:00AM BST.

THE rate of inflation has fallen. Figures issued today show that strong economic growth no longer means high inflation, according to Chief Minister Frank Walker.

Prices rose in the 12 months to the end of September by 3.9%, down from June’s figure of 4.3%, but the rate of inflation when house price costs are excluded – known as the RPI (x) – was 2.2%, the second lowest annual increase ever recorded. And it would seem that competition between Island retailers is keeping prices low. Prices of household goods, clothing, footwear and leisure goods all fell in the year to September.

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