Jersey's inflation rate has fallen to single figures for the first time since September 2022.
Prices have jumped by 7.5% of the 12 months to December 2023, the slowest rise since March 2022.
Housing costs were again the biggest rise, jumping nearly 17%, due to high-interest rates and costly utility bills.
The food shop is 5.9% more expensive than last Christmas.
Despite the drop, the island's inflation rate is still the highest of anywhere in the British Isles.
Guernsey's rate has fallen to 6.3%, while the UK's unexpectedly rose to 4%.
Jersey's new Chief Minister, Lyndon Farnham, says the high cost of living is one of his 'key priorities' for his government.


Police name woman found dead in Alderney
Aquasplash to close after legionalla bacteria detected
Review into consultations after Apple Crusher backlash
Jersey Budget 2027: Families to get more support with cost of living
LibertyBus moves to winter timetable
Police share update on suspected murder in Alderney
Haut Du Mont trial: Supervisor 'felt really responsible' when told of explosion
Plan to relocate Apple Crusher abandoned