Guernsey cost of living up by 2.7% over the past year

The cost of living in Guernsey has increased by 2.7% over the past year according to a Jersey government report.

This compares to 1.5% cost of living increase in Jersey and 3.3% in the UK.

This is the first time since 2005 that the Jersey retail price increase was lower than Guernsey's increase.

The biggest increase in prices in Guernsey were in electricity, oil, gas and coal with the average cost of housing and food up by 4.1%.

The report found that on average people in Guernsey were paying 4p more for every £1 spent on groceries.

The only prices standing still over the past year were household services while the cost of clothing and footwear actually went down.

The Channel Islands Competition Regulatory Authorities said it was investigating the retail market to see if more competition would work.

Chief Executive Andrew Riseley said they could play a part in bringing down prices in the islands by ensuring healthy competition exists between retailers.

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