Jersey Inflation Holds Steady at 2.8% in Final Quarter of 2025
The latest figures from Statistics Jersey reveal that the Island’s annual inflation rate remained stable at the end of the year, with the Retail Prices Index (RPI) rising by 2.8% in the 12 months to December 2025.
This figure matches the rate recorded in September 2025, signaling a period of relative stability in price increases across the Island. However, the current rate is slightly higher than the 2.5% recorded in December 2024.
Key Drivers of Inflation
The steady headline rate hides fluctuating costs across different sectors. Several categories saw significant price hikes, with Leisure Services—which includes off-Island holidays, entertainment, and sports fees—emerging as the largest contributor to the overall increase.
Other notable upward pressures included:
Food: Prices rose by 3.7%, driven by global supply chain costs.
Motoring: Vehicle and petrol costs continued to contribute to the rising cost of living.
Household Services: Including school fees and phone bills.
Underlying Inflation & Vulnerable Groups
While the headline RPI stayed flat, measures of underlying inflation showed a slight cooling. RPI(Y), which excludes mortgage interest and taxes to show "core" price movements, rose by 3.8%—a decrease from the 4.1% seen last quarter.
The data also highlights the differing impact of inflation on local households:
RPI Pensioners: Increased by 3.9%.
RPI Low Income: Increased by 3.6%. Both of these rates were between 0.2 and 0.4 percentage points lower than the previous quarter, suggesting a slight easing of pressure on these specific demographics.
Jersey vs. The UK
Jersey continues to track below the UK’s inflation levels. The Island’s 2.8% RPI is 0.8 percentage points lower than the comparable UK headline rate (CPIH), which stood at 3.6% for the same period.
For businesses and residents alike, these figures suggest that while the rapid price surges of previous years have slowed, the cost of essentials like food and services remains a central factor in the local economy.
Read the latest release HERE.
