Cost of Living dramatic fall

Guernsey's rate of inflation took a huge dive in the last 3 months of 2008.

It's fallen from nearly 6% in September, to 1.2% at the end of December.

Housing costs have been the biggest contributor to the drop in inflation.

Thanks to a cut in mortgage interest payments, the retail price index for
housing fell by 11%.

But fuel and power, travel fares and motoring costs have all dropped as well.

Household services like child minding is the only area that's seen a
significant increase- that's up over 5.5%.

At 1.2%, our rate of inflation's still a little higher than the UK's which is
just under 1%.

But Jersey's latest RPI figure is still more than double Guernsey's (from Islefm)