Jersey inflation rates highest in 32 years

The island is seeing its highest rise of inflation rates in 12 months - the quickest rise since 1990

Inflation in Jersey has hit its highest rate since 1990.

The Retail Price Index (RPI), which reflects the cost of living, said the average rate of inflation had risen to 10.4% since June.

The highest price hike has been in the cost of fuel and domestic energy which has shot up by more than a quarter.

The rate of inflation has gone up markedly since January, surpassing the UK's rate of 10.1%.

Housing costs rose by 15.9%, with treasury minister Ian Gorst saying it could offer tax breaks if mortgage interest rates continued to rise.

• Government agrees £56m 'mini-budget' for Jersey

• Jersey homeowners may be offered tax breaks if rates rise

• Views sought on Jersey's cost of living mini-budget

Assistant Minister for Treasury and Resources, Constable Richard Vibert, said the government had put measures in place to counteract the rise.

"The high inflation figure announced this morning will clearly be worrying for islanders and we shouldn't underplay that," he said.

"However, the high figure wasn't wholly unexpected, and we took the possibility of such a rise into account in designing the scale of measures within the recent mini-budget.

"The government will continue to monitor the situation closely and is actively considering further help where necessary so we can offer support in a targeted and timely manner."

Rates showed the cost of fuel and domestic energy had risen by 25.1%, followed by housing and then motoring at 12.9%.

The cost of food has risen by 10%.

Follow BBC Jersey on Twitter and Facebook. Send your story ideas to [e-mail].