Jersey Sees Inflation Rise to 2.8%

Consumer prices in Jersey increased by 2.8% in the year to December, remaining largely unchanged since September and below the UK and Guernsey rates of 3.4%.

Food costs rose 3.7%, driving much of the increase, while holiday, leisure, and motoring expenses also contributed. Underlying inflation, which excludes mortgage interest and indirect taxes such as GST and impôts, eased slightly to 3.8% from 4.1% in September 2025.

Beef prices soared 25.9% over the year, with coffee and cocoa up 13.8% and butter rising 12.2%. Since 2020, beef and lamb have become 60% and 50% more expensive, respectively.

Inflation in Jersey had peaked at 12.7% in March 2023. In comparison, UK inflation remains above the Bank of England’s 2% target, despite six interest rate cuts since August 2024, leaving the base rate at 3.75%. The next decision on rates is due Thursday, 5 February.