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AfricaMoney | June 22, 2017

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Mauritius: Feb production price index dips over Jan as food & beverage prices down

Mauritius: Feb production price index dips over Jan as food & beverage prices down

The PPI measures the changes in the effective prices received by Manufacturing sector producers for the part of their output that is sold on the domestic market; reflecting the price trends of a constant basket of goods, representative of the output of these manufacturing industries. (Image: www.sapartners.com)

Statistic Mauritius released a Production Price Index (PPI) of 133.3 points for February 2015, representing a drop of 0.6% against January 2015, even as a rise of 0.2% was recorded while compared to the corresponding period in 2014.

The PPI measures the changes in the effective prices received by Manufacturing sector producers for the part of their output that is sold on the domestic market; reflecting the price trends of a constant basket of goods, representative of the output of these manufacturing industries.

The lower value of the index for February was derived mainly due to lower prices in “Manufacture of Food products and beverages”.

This segment accounts for around 60% of the index therefore price movement in this section is directly reflected in the PPI as evident in the average yearly index for the manufacturing sector as a whole being 133.8 in 2014, 0.1% lower than the figure of 134.0 in 2013, largely upon decrease in food products and beverages prices by 1.2 points (-0.9%).

According to the latest budgetary measures, beverages companies were spared from raises in sugar, water or alcohol tax levies. However a record low MUR against the USD is likely to hurt both margins and consumer demand, and this will be the case for companies dealing in food products as well, besides beverage majors.

Finally, for such firms, the budget showed itself unclear on whether large farmers would also benefit from bio-farming tax breaks although it was explicitly stated that producers of animal feeds might benefit from a higher government subsidy on feeds at Rs4/kg.

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