The island has entered a period of deflation amid the continuing impact of Covid-19 border restrictions.

Inflation as measured by the consumer price index fell by 1.4% in September to -1.3%.

Transport is the biggest contributor to the drop, causing a 1.5% decrease in the overall rate compared to same time last year.

Air travel decreased by 21.5% compared to September 2019. Sea travel was down 14.4%.

Clothing and footwear were the second biggest contributor to the rate of inflation, causing a 0.9% drop in the overall rate.

Housing, water, electricity, gas and other fuels were the third biggest contributor, causing a decrease of 0.3%.

This was driven by the price of oils and other fuels which fell by 34.6%.

While some things were cheaper, others were more expensive. Driving lessons were up 11.1%, postage jumped 8.8%, pork was up 12% and lamb rose by 9%.

Deflation is a sign of a weakening economy fuelled by lower consumer spending. It encourages people to put off spending because they think prices might drop further later.

The last period of sustained deflation was four years ago, although CPI dipped into negative territory in June during the Covid lockdown.