Your island

Whether it’s meat and veg, butter and eggs, or your morning porridge, the price of your weekly shop is on the increase.

And it’s not just food shopping where islanders are feeling the pinch, it’s now 74% more expensive than last year to warm your home with heating oil.

The Retail Price Index (RPI), which measures the cost of living and covers all items, has risen by 5.6% since last June.

The introduction of the controversial GST accounts for 1.9% of the increase.

Not just Jersey

Despite this increase, the Treasury Minister, Senator Terry Le Sueur, said there was some comfort in knowing that food prices rose by the same amount in Jersey as the UK.

“It is disappointing to see food and fuel costs going up at the rate they are,” he told BBC Jersey, “but we can’t do much about that, it’s happening in other parts of the world, including the UK.”

Deputy Alan Breckon, who chairs the Consumer Council, said it was unfair to impose a new tax when outside influences were pushing prices higher anyway.

Deputy Breckon added it was important to remember Jersey prices were starting high anyway, and the movements added even more financial strain to households.

Increasing wages to cover GST?

Senator Le Sueur warned against a strategy to introduce wage rises which covered the cost of GST, as it would more or less render the tax ineffective.

You should 'shop around' for the best price

“The effect of GST has been to make life a little harder for local consumers,” explained the Senator.

“If we simply put that money back in their pockets in wage rises we’ve lost the whole benefit of GST, and we’ve simply ramped prices up to a higher level for no good to anybody.

“What we have to do is accept the economic advice that those sorts of arguments, while they might appear superficially sensible, are not good in the long run.”

'Basic principles of thrift'

As it is gets harder to put food on the table and fuel on the fire islanders should “relearn the basic principles of thrift and save”, according to Senator Philip Ozouf, the Economic Development Minister.

The Consumer Council want basic items GST exempt

“All of us here in Jersey have to understand that we’ve got to make our own choices to make our money go further.

“That means being more demanding in terms of the retail offer, that means getting the same goods at lower prices, shopping around,” he added.

Exemption for essentials

Deputy Breckon said the Consumer Council would be supporting an amendment to make basic foods exempt from GST.

However, there is some good news for the fashionistas of the island. One area of retail which is bucking the treat is clothing and shoes – prices fell by 4% over the last year.