JERSEY is starting to feel the effects of the economic downturn, with a significant fall in inflation in the final quarter of last year.
The Island’s inflation rate stood at 3.3% at the end of 2008. At the end of September the figure was 6.4%. And the rate of price increases is likely to fall further in the months ahead.
The figures were released this morning by the States Statistics Unit. States economic adviser Dougie Peedle (pictured), said: ‘This is the first real indicator of the effects of the worldwide economic downturn filtering through to Jersey.’
However, although the repeated cuts in mortgage interest rates toward the end of last year were included, an expected fall in house prices this year has not yet impacted on inflation.