Mauritius Inflation Rate Declines to 3.1%, Lowest in Two Years

Mauritius’s inflation rate fell for the first time in three months in November to the lowest in more than two years, the country’s data agency said.

Inflation slowed to 3.1 percent, the lowest since September 2010, from 4.2 percent in October, Statistics Mauritius, based in the capital, Port Louis, said in a statement on its website today. Prices rose 0.6 percent in the month, it said.

Higher fuel and foods costs will impact on the consumer price index in the months ahead, according to the Bank of Mauritius, which forecast the inflation rate would climb to 4.5 percent in December and reach 5.7 percent by the end of 2013.

Last month, the central bank’s Monetary Policy Committee, led by Governor Rundheersing Bheenick, left its benchmark interest rate unchanged at 4.9 percent. Some members of the committee had called for an increase to ward off inflationary pressures.

Mauritius, an Indian Ocean island nation with a population of about 1.3 million people, is a net buyer of food and fuels. Imports account for nearly 53 percent of the consumer price basket, according to Bheenick.

The rupee has gained 1 percent against the dollar since the MPC decision, according to data compiled by Bloomberg, trimming its loss to 0.7 percent this quarter. The currency traded 0.8 percent stronger at 30.6 a dollar by 10:26 a.m. in Port Louis.

Editors:

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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