Figures released today, Friday 5th January 2018, show that the annual rate of inflation increased in December 2017 and now stands at 4.1%.
The rate of inflation had risen from 3.8% in November 2017 driven by rising prices across all categories of goods and services on the Island. Transport and Restaurant & Hotels continued to be a significant driver of inflation during December, however food and non-alcoholic beverage were also a cause.
The cost of travelling off the Island has continued to increase, as have meals out and drinks in bars and pubs. The cost of most groceries has also increased compared with 12 months ago, with the exception of fruit and beef which is slightly cheaper.
There is an underlying impact of the weak pound against the Euro and the increasing price of oil which is outpacing the recovery of the pound against the dollar which is having an impact across a number of categories.