Mauritius’ year-on-year inflation at 2.1% in April; 2015’s headline inflation forecast at 3%
Statistics Mauritius data showed that year-on-year inflation fell to 2.1% in April upon lower prices recorded for vegetables, while the central bank said it sees headline inflation for the island economy stabilising at about 3.0% in 2015. (Image: averysegal.com)
Mauritius saw year-on-year inflation declining to 2.1% in April 2015 from 2.2% in the previous month, as prices of vegetables decreased, according to data released by Statistics Mauritius today.
The Consumer Price Index (CPI) for April 2015 stood at 110.0 points, lower than the 110.1 points in March 2015.
Meanwhile, on percentage change in the index between March and April 2015 under various categories, ‘food and non-alcoholic beverages’ dropped 0.6%, and restaurants and hotels decreased by 0.7%.
Categories reporting higher percentages were ‘alcoholic beverages and tobacco’ which rose 0.1%, ‘clothing and footwear’ went up by 0.8%, ‘furnishings, household equipment and routine household maintenance’ went up by 1.7%; and, ‘education’&‘recreation’ rose by 0.9% and 0.4% respectively.
In addition, Statistics Mauritius noted that headline inflation for the twelve months ending April 2015 worked out to 2.2%, compared to 4.0% for the twelve months ending April 2014.
Furthermore as per the Bank of Mauritius inflation report for April 2015, based on the short-term forecasting model, and under the baseline scenario, CPI inflation is estimated to be moderate during 2015, as the current slack in the domestic economy and subdued energy and food prices are likely to prevent substantial pick-up in inflation in the short term.
Accordingly, headline inflation is projected to remain subdued in the near term, stabilising at about 3.0% in 2015.
The depreciation of the rupee would not have a notable impact on inflation given the current international economic environment.
Further, at the last Monetary Policy Committee (MPC) meeting held on 06 April 2015, the Key Repo Rate (KRR) has been left unchanged at 4.65% because of the balance of external and internal risks affecting growth and inflation outlook of the economy.
It may be noted that the central bank releases its inflation forecasts for the island economy twice a year, once in April, and then again in October.
To access the detailed inflation report released in April for the period October 2014 to March 2015, please click here: