Inflation in Jersey rose by 5% in 2011

Inflation in Jersey rose by 5% during 2011, says the States Statistics Unit.

The retail prices index (RPI) measures the cost of goods and services in the island.

The latest RPI figures showed higher costs of motoring, food and housing were key contributors to inflation.

The cost of food rose almost 7% last year. Cereals, cheese and processed meat increased by more than 15% and butter, oils and fats, processed fish and processed fruit rose by 10%.

But fresh vegetables, eggs and some fresh meats were on average at slightly lower prices last year.

Fuel and energy costs saw the largest increase on an annual basis, up by 7%.

The States Statistics Unit said the increase in the rate of goods and services tax (GST) also affected the rate of inflation.

In June 2011, GST rose from 3% to 5%.

The retail prices index was 5.4% in September, so it fell slightly in the last quarter of 2011.

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