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Spike in inflation

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WQ.116/2022

WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE

BY DEPUTY G.P. SOUTHERN OF ST. HELIER

QUESTION SUBMITTED ON MONDAY 4th APRIL 2022

ANSWER TO BE TABLED ON MONDAY 11th APRIL 2022

Question

Will the Minister advise what tangible proposals he has under consideration to ameliorate the impact of the spike in inflation in the U.K on our own economy, and does he have estimates for the extent and duration of such inflationary pressures?

Answer

The inflation strategy group has already met twice to both assess the impacts of inflation and investigate the most appropriate, targeted mitigations. We recognise the importance of this issue and will be meeting again soon to discuss further options. We have already increased benefits to support those most vulnerable in our community, which were recently announced by the Minister for Social Security, as well as urgently investigating other possible targeted responses.

The Fiscal Policy Panel recently produced its latest report. Within that they have forecast inflation to continue to rise during this year and peak at 5.9% before starting to decline in 2023. However, inflation in the next year will continue to be higher than recent trends, before falling back to the long-term trend of 2.5%. It is important to note that this estimates peak Jersey inflation to be lower than UK levels but understand that the UK inflation will impact on our own economy.