Guernsey's inflation rate more than doubles in 12 months, reaching a 30-year high

The RPI has increased to 7.9%. Credit: ITV Channel Television

Guernsey's rate of inflation has reached its highest level since 1991.

The headline RPI figure has reached 7.9%, meaning it has more than doubled compared to the same time last year.

Retired people, low-income households and those who own their own homes but don't have a mortgage are being hit the hardest by the rising cost of living.

One of the main factors contributing towards the increase in RPI was the cost of electricity and gas which have gone up by more than 25%.

RPI is Guernsey's main measure of inflation, tracking changes in the price of goods and services purchased by an average household each year.

Other contributors to the inflation rate include the price of petrol and diesel which has increased by more than 12% and the cost of food which has gone up by almost 10%.

For shop owners, this increase in the inflation rate affects the costs of running the business meaning prices for consumers have to go up.

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Keith Bienvenu, Director of Forest Stores, says he has recently switched to a cheaper form of lighting to help with the electricity bills and is also keeping a close eye on food prices.

He says: " I had a notification today that coffee prices will be going up but not until January so you do get a warning of something like that.

"Fresh fruit and veg seem to be seasonal so you get changes on a fairly regular basis."

For people living in Guernsey, the cost of food has been the most noticeable increase.

Despite a sharp increase in Guernsey's RPI, the rise is still considerably lower than the 30-year-high of 10.4% in Jersey announced last week. It is also lower than the inflation rate of the UK, which currently sits at 10.1%.