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Inflation falls to all-time low

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Inflation in Guernsey is at its lowest since records began in 1965

There has been a big drop in the rate of inflation in Guernsey, according to official figures.

The States policy council figures show inflation fell from 5.8% in September 2008 to 1.2% at the end of December - the lowest since records began in 1965.

Clothing and footwear prices dropped by about 7%, while fuel and power fell by more than 3% in the same period.

The cost of housing was the main reason for the reduction, with a big fall in mortgage interest rates.

The previous lowest inflation rate was 1.3%, recorded in 1993
States of Guernsey spokeswoman

Alcoholic drinks saw one of the biggest increases, with prices rising by more than 10%.

The RPIX, which does not include the cost of mortgages, was 4.6% in December - a fall of 1.6% on the previous quarter.

A policy spokeswoman told BBC News the 1.2% rate was the lowest since records began in 1965.

"The previous lowest inflation rate was 1.3%, recorded in 1993," she said.



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