Inflation remains stubbornly high - experts

Various organisations credited Guernsey's cost of housing as a key driver of inflation

Guernsey's rate of inflation remains "stubbornly high" despite slowing, a business leader has said.

Richard Hemans, from Guernsey's Institute of Directors, said inflation was being driven by the high cost of housing and labour.

RPI inflation in Guernsey slowed to 5.3% in the year to June, according to States figures.

This compares with an inflation rate of 2% in the UK over the same period.

Tight labour market

Mr Hemans warned inflation rates could "undermine our competitiveness if not addressed".

"The States of Guernsey's focus on providing more housing is exactly right because it will have both long-term economic and social benefits," he said.

"The island is an attractive place to live and work, and the supply of housing and labour remains very tight."

Guernsey's Chamber of Commerce also cited a lack of affordable housing as a factor affecting inflation.

President Stephen Rouxel said the island needed to see an "increase in the number or people in work and the amount of property available" to create better access to labour.

'People are struggling'

Citizen's Advice said many islanders were still struggling with the cost of living.

Ali Marquis, the charity's chief executive, said it was regularly offering advice on "everyday living" costs such as rent increases, energy prices and food.

"People are struggling with these increased costs, we are seeing more people for additional assistance," she said.