Inflation squeezes pensioners and low‑income households in Guernsey and New Zealand

In Guernsey, the Retail Price Index rose to 4.3% in the year to June 2026, driven mainly by a 19% jump in fuel and electricity costs. Pensioners saw inflation of 5.2% and low‑income households 5.1%, while high‑income households were at 4.0%. Essential goods such as food, heating and rent rose about 6‑7%, leaving retirees and poorer residents with little disposable income. The debate over a proposed goods‑and‑services tax (GST) has intensified, with supporters arguing it would shift the tax burden toward tourists and higher spenders while protecting vulnerable islanders.

In New Zealand, Stats NZ’s latest household cost‑of‑living index shows that superannuitants and low‑income families are now the hardest hit by rising food, rates, electricity and petrol prices. After escaping the worst of the 2022 inflation surge, these groups are experiencing the widest cost‑of‑living gap since the Global Financial Crisis, highlighting a growing disparity for those reliant on essential spending.