Chamber response to latest RPI figures
Friday 21 July 11:12
The latest retail price index figures for Jersey (June 2017) are generally good news. Inflation is at a lower level than expected, with a drop in the last quarter to 2.5% and a lower inflation rate than the UK of 2.7%.
The latest retail price index figures (June 2017) for Jersey are generally good news. Inflation is at a lower level than expected, with a drop in the last quarter to 2.5% and a lower inflation rate than the UK of 2.7%.
As anticipated, food increased by 2% on average over the year, which was to be expected given the issues with the value of sterling that has been well recorded. Albeit overall prices decreased in the last quarter by 1% due to lower prices predominantly in fresh food.
Clothing and footwear, which increased in the UK, actually decreased in Jersey, suggesting that the retail market locally remains competitive. Mark Cox, Chairman of the Retail & Supply Committee said the decrease was good news for islanders: “On-island retailers have been working extremely hard to compete with off-island retailers, who, due to Jersey’s GST de minimis level, (that allows goods under the value of £240 to be imported into Jersey without being subject to the 5% tax), have an unfair advantage over companies based in Jersey.”
“The decrease in clothing and footwear, is a clear indicator that Jersey retailers are extremely conscious of price, remaining competitive and encouraging islanders to shop locally. The sector is investing a huge amount of time, money and effort to enhance the on-island retail offering and provide islanders with a wonderful high street and island retail experience.”
Despite external economic influencing factors such as Brexit, fluctuating value in sterling and political uncertainty in the UK, the .2 percentage point RPI difference between Jersey and the UK (2.5% and 2.7% respectively) is good news for Jersey’s economy.