Guernsey Quarterly Inflation Bulletin Q3 2010
Introduction
The Guernsey RPIX and RPI, are measures of infl ation used in Guernsey. They measure the change in the prices of goods and services bought for the purpose of consumption or use by households in Guernsey. The indices are published quarterly by the States of Guernsey Policy and Research Unit. The calculation of the RPIX and RPI are based on the price change of items within a ‘shopping basket’. Whilst some prices rise over time, others will fall or fl uctuate and the indices represent the average change in these prices. More detailed information on the calculation of these indices can be found at the end of this handout.
Headlines
- Guernsey’s annual infl ation as measured by RPIX (“core” infl ation excluding mortgage interest payments) was 2.3% in the year ending September 2010, compared to 2.4% in the years ending June 2010 and September 2009.
- In the UK and Jersey the equivalent RPIX fi gures for the year ending September 2010 were 4.6% and 1.9% respectively (see Figure 1).
- Eleven of the fourteen RPIX groups increased in the year ending September 2010.
- For the fourth successive quarter the fuel, light and power and motoring groups were the largest contributors to the annual increase in RPIX. However reductions in oil product prices during the third quarter of this year resulted in a reduce upward contribution compared to last quarter.
- The household services group made the largest negative contribution (-0.5 percentage points) to the annual change.
- The ‘all items’ RPI infl ation rate was 1.6% in the year ending September 2010, compared to 2.3% in the year ending June 2010 and -1.2% in the year ending September 2009.