Inflation warning as cost of living rises
Wednesday 20th April 2011, 3:00PM BST.
The figures were explained at a press conference this morning
THE cost of living in Jersey has risen by 3.1 per cent in the past year, the Treasury Minister announced today as he warned of more challenging times ahead.
Fuel and energy bills and the cost of alcoholic drinks have driven the increase, which has prompted ministers to urge urging business to show restraint on pay rises.
The latest Retail Price Index figure, which was released this morning, of 3.1% is 0.8% higher than the rate in December, and the rate is expected to rise further in 2011 with GST set to increase from 3% to 5% at the start of next month.
• Full report in Wednesday’s Jersey Evening Post
Read the full story in the Jersey Evening Post. Click here for subscription details. Individual editions are also available online.
Travel
To, from and around the Island
Airport Arrivals/Departures
Harbours Arrivals/Departures
Bus Information/Timetables
JOIN US ON...
Facebook and Twitter
Follow us on Facebook
Follow us on Twitter
Got a story? Get in touch
KIT 4 CLUBS
Win a share of £10,000
2012 is the year of the London Olympics and to celebrate this great event the Jersey Evening Post, in association with sponsors Ogier is giving all sporting clubs a chance to win a share of £10,000.
This is Jersey
Jersey Evening Post
Useful links
What a surprise!
Will the wages and pensions increase?
GST up in June,soon it will be just the rich who can afford to live here,the rest of us can go whistle.
As if they care.
Report abuse
“which has prompted ministers to urge urging business to show restraint on pay rises…”
Don’t ministers understand that we are already pushed enough as it is? This is no joke, we are not making this up – times are really difficult for many.
Domestic fuels are going up, GST is going up, food prices are going up, petrol prices are at their highest ever levels. We are paying more income tax than ever before – we have no spare cash for life’s pleasures… we barely have enough for life’s essentials.
Yes, the government has to get a grip on inflation, but, in my opinion, there are better ways.
I can’t see how this woeful government is addressing stimulating the economy – this, for me, is key to recovery. Everything is so expensive at the moment that businesses are still laying off people, these people aren’t paying their taxes, so Income Tax need to tax more to make up the shortfall.
If we spend less, the government has to spend more – if we spend more than that’s when the economy starts taking off again. But in order to spend more, people need job security and – most importantly, spare cash in their wallets.
Report abuse
“inflation warning as cost of living rises”
I’m so pleased they told us, I hadn’t noticed.
Tomorrow’s headline – warning water is wet.
How can we have utility increases in the order of 24% and the corresponding rise in cost of living is only 3.1%.Petrol is up by around 10% and that’s before the GST increase.Cigs, booze,food all above cost of living rises, what is this figure based on – presumably something nobody uses.
I’m pleased I’m thick so I don’t have to work it out.
Report abuse
I remember Phillip Ozouf assuring us that GST would not be inflationary when it was introduced, I suspect that he expected that retailers would absorb the tax in to their overall costs.
It turned out that he was wrong then and now he is expecting more inflation due to GST going from 3 to 5%.
Jersey used to be a place of high incomes and low prices but those days are fast disappearing and with Jersey’s footloose population quite a few islanders may be heading off to greener pastures with them!
Report abuse
3.1% – the exact amount of my raise this year, typical!
Report abuse
“which has prompted ministers to urge urging business to show restraint on pay rises”.
UHHHH excuse me but what about starting with yourselves,consultants,highly paid imported labour,executives on astronomic contracts,where do we finish but no its all our fault at the bottom end!!!
Report abuse
no kidding , the ordinary working person knows this .
we work more and get less to take home, the pay rise , if lucky , will not cover the rise in gst.
for many it will be no pay rise to speak of, more like a pay cut , i had far more in my pocket in the eighties, and could buy more too.
Report abuse
I see that the price of milk is increasing by 5p a litre. Of course if there were any REAL consumer choice and competition on this island then we wouldnt have to worry as much about the spiralling cost of living. Alas there is no competition and as it is local suppliers have carte blanche to charge what they like for the goods and services they provide without, and of course higher priced goods means an increased tax take in GST for the states, which provides them with more of our money to squander as they see fit.
Under current cirumstances it is only a matter of time before I uproot my family and leave these shores, we simply cannot afford to live here any more.
Report abuse
So to add insult to injury “MILK” is now going up in price.
Time for import ( Maybe)
Report abuse
I think we could do with some qualified accountants in the States of Jersey. Apparently, back in the 50′s and 60′s all Senators knew how to do their basic maths.
Let’s start recouping some money on Senators free lunches, drinks machines and free parking. Let’s stop wasting money on useless steam clocks, silly statues of frogs and constantly changing the one way system around town. How about a Departure terminal at the airport that is about 40-50 higher than it needed to be? How much was spent on the tourism logo?
I would love the states to show us how they justify paying some of those astronomical salaries to the Heads of state departments. Tell us what they really do to deserve those wages.
I want this Island to blossom, not struggle to survive. I feel we need more transparency about plans so that we know why we are suffering financially now, what it will achieve and by when?
Report abuse
MLP stats can be interpreted in many different ways!
Pip at some stage Jersey will fall low enough for the majority that other places will have more going for them, unless things take a change for the better, that is. Not that I’m holding my breathe with this lot in charge.
So thats an increase in wages of 5.1% just to balance the books for workers then. Or a 5.1% fall in productivity/hours at work to maintain parity if no extra is on the table.
Inflation is a great way to cut wages in real terms, add in the times is hard excuse and voila hundreds if not thousands are put into the low income bracket meaning extra payments from social security to make up the shortfall.
Tie this in with lots more minimum wage jobs being on offer now and its tough times ahead for many more…unlike the rich and big business who will be largely unaffected by this turn of events.
Report abuse
ozoufs calculator is giving out the figures he all wants us to belive would think it is more like 6.5 percent with the price of food and fuel and gst going up and milk going up etc etc etc
Report abuse
Also in the news, sun is hot, earth is round and grass is green.
I think we should start a class action against the JEP for not reporting any news, any takers ?
Report abuse
Andy, regarding spending to turn our economy around … otherwise we’ll face more tax … Finance is the problem. And 0% for companies with them then being taxed in their home jurisdiction either on remittance or on income basis.
Not saying we need to get rid as we all know the whole place would collapse. But, 0% for companies not beneficially owned here – we are giving it away. Something needs to change.
Report abuse
“I think we could do with some qualified accountants in the States of Jersey. Apparently, back in the 50′s and 60′s all Senators knew how to do their basic maths.”
We are ruled by accountants!
Terry le Sueur is a chartered accountant, Ian Gorst is a chartered accountant and Phillip Ozouf is a management accountant.
How many accountants does it take to balance a budget?
More than three!
The money is pouring out of the door while they do nothing.
Report abuse
Spot on eagle eye – JEP king of the non story: recent ‘articles’ car scratched in car park, barrier erected in square, punctured boat found floating in sea, boat springs leak in Gorey and that is just over the past few days.
Here are a couple to get your journalistic juices flowing: sunny weather on bank holiday (big story about to unfold), water company digs up road, etc etc
Report abuse
Taxes have driven the increase. Taxes will drive the increase further.
Cut government jobs, cut the population, cut house prices, cut taxes.
The Civil Service are the problem, they will never provide the solution.
Report abuse
This is one of the reasons why I took time out and went to the no GST on food meeting at the Town hall on Monday evening. Yes I am one of the 30 Mugs (as some have indicated on other web pages) that attended the meeting, really don’t know why I bother sometimes. I May just throw the towel in like most of the population here. Sorry if this causes offence to anyone.
Report abuse
Seems like most commentators on here do not appreciate that despite Jersey’s ability to set its own fiscal policies it is impossible for it to shelter itself from pressures beyond its shores.
Inflation is a classic example. In case anyone hadn’t noticed the balance of trade is about 10:1 in favour of imports. Therefore if imports cost more because of increased world wide demand over world wide supply Jersey has little option but to pay the higher prices and pass this onto locals and hey presto – inflation!
GST is insignificant. In fact if the majority of comments on here are correct and peoples wages are not increasing in line with GST then its effect will be deflationary as it reduces local demand. The UK has been suffering with high inflation and the BoE and were about to raise interest rates before they saw a slight reduction thought to be due to a fall in consumer confidence as ConDemNation slashes the public purse. Jersey’s fiscal cycles tend to be about 3 to 6 months behind the UKs so it wouldn’t surprise me if inflation comes under control again. If it doesn’t well that must mean most peoples salaries are increasing to compensate.
Report abuse
Well my salary in the past 5 years has gone up 1.2%!
All employers will love the statement not to give pay rises – as if they needed any more excuse.
As a local lad with a family I can no longer afford to live on this once beautiful island – £1.70 for a white loaf!!
Will the COM ever realise it is not salaries of the ordinary workers that are inflationary but their ridiculous policies of tax tax tax, to recoup the money THEY WASTE, which is then included in the price of goods and services as it is passed onto us..
Report abuse
3.1%,pull the other one. Does the Jersey RPI basket have a 60% weighting to DVD players and MP3s!
Report abuse
#1 ‘Will the wages and pensions increase?’
Well, No – actually!
The Business Survey has suggested that Employers will be increasing Wages by only 0.2% this year and ESS Pension Increases will follow suit. I am raely waiting for my 56p per week rise this October!
Report abuse
Jersey’s Economic Development Minister tells Islanders “They would be better off without a pay-rise this year”.
If this is his method of controlling ‘stag-flation’ (inflation in a stagnant economy) – to hope people struggle, starve and go cold in the winter – he is clearly incompetent and incapable of doing his job and must be removed from office.
Report abuse
How about asking companies not to put up prices?
Report abuse
While I did not study economics, I sort of understand the priciples. The reality is that we are facing reductions in our wages through no pay rises, inflation AND incresed ITIS rates as 20 means 20 kicks in.
So as ones buying power decreases, and after buying the essentials, there is less to spend on home improvements, changing the car, and nice things to have, the economy will still grow ! Try explainung that to salesmen who works on commision !!!!!!
Report abuse
how true , derek trotter(10)
as a blue collar worker, thru, books like alan greenspans book and the history of money(channel four series).
even i had been enlightened to stagflation.
these times we live in are history repeating its self, we have a hung parliment in the uk , for instance, like after the 2nd world war.
unfortunatly due to having to do more to get less ive had to take the eye off the ball, to remember how those old politians, “back in the day” delt with the problems of the day.
i am sure some one on here can give me a quick history lesson ( i went to a state school) i have yet to find the time to read the book “the development of goverment in jersey 1771 -1972″ and form my own opinion of where we are now.
Report abuse
Totally hear you Drowning Man. I’ve just bought a second car (nice little sports convertible) to take adavantage of the sunshine and will also mean that I’m not incurring the petrol costs of my Range Rover Vogue every day. We’ve all got to make economies.
Report abuse
@17 Jim Whinge.
Good comment, why not state, save money, don’t waste it, make more!!!
Einstein!
x
Report abuse
So its a 5.1% adjustment then on wages, even this is on the conservative side as far as I am concerned. I would put inflation in the 5-10% range for the things that really count, like food for example.
I have no dout some will be making a 5.1% reduction in productivity to balance the books if they don’t get what they are due.
small money I put the position as somewhere between the Great Depression and the Occupation.
Report abuse
the income support increase further to
What a surprise!
Report abuse