Workers could look at a figure of 4.9% when it comes to the pay rises

Inflation is at 4.9%, and though public spending is to be cut next year, the Chamber fears it is not enough.

Among the reasons for Jersey's continued inflation problem are housing costs, leisure services and fuel prices.

The States is facing a �19m shortfall and the Finance and Economics Committee is proposing a series of measures for cuts.

I think all of us can think of ideas of locations where some savings can be made Bob Hassel, Jersey Chamber of Commerce

Duty on petrol, alcohol, car and house sales were raised in the last budget, but that does not appear to have has helped yet either.

Jersey's Chamber of Commerce fears workers will now be looking at a figure of 4.9% when it comes to the pay rises, leading to more price rises.

Speaking for the organisation, Bob Hassel said the States needs to learn from the private sector.

He said: "There is certainly a need to push more initiatives through, not to increase costs by less but to contain or decrease some of the costs.

"I think all of us can think of ideas of locations where some savings can be made and I am not saying everything is under review but I think people do need to look carefully.

"If the public sector was a private sector organisation, they would be looking at containing there costs without any shadow of a doubt."

Mr Hassel says the Chamber of Commerce is willing to work with the States to tackle inflation.