Inflation increase highest for 18 months

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And the quarterly increase in food prices from March to June was the highest the Island has seen in five years.

The headline rate of inflation increased by 2.9% in the 12 months to the end of June, sparking fears that another period of increasing prices could be on the horizon.

The States’ target for the underlying rate – which excludes the cost of housing – is 2.5% and this is the first time in 18 months that the Retail Prices Index, at 3.1%, has been above the target figure.

The primary contributor has been a sharp rise in world oil prices, which has led to consequent increases in utility bills, travel costs and motoring expenses, among other things.

Dr Duncan Gibaut of the States Statistics Unit said this was the third consecutive quarter in which there had been an increased growth rate.

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