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Mauritius August Inflation Unchanged at 21-Month Low of 3.7%

Mauritius’s inflation rate was unchanged in August at a 21-month low, giving the Indian Ocean island’s central bank room to cut interest rates to spur growth.

Inflation was unchanged at 3.7 percent in August, Port Louis-based Statistics Mauritius said in a statement on its website today.

The $10 billion economy will probably expand at its slowest pace in three years as the debt crisis in Europe curbs tourism and exports. The statistics office cut its growth forecast to 3.5 percent from 3.6 percent in June.

The Bank of Mauritius left its benchmark interest rate on hold at 4.9 percent on June 11.

The rupee weakened 0.7 percent to 31.15 a dollar by 11:34 a.m., according to data compiled by Bloomberg.

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