Bank of Mauritius Sees Inflation Breaching Target by Year-End

Inflation in Mauritius may breach the upper limit of the central bank’s target range this year as prolonged conflict in the Middle East raises the cost of imported goods, Bank of Mauritius Governor Priscilla Muthoora Thakoor said.

In February, the bank forecast average annual inflation — the bank’s preferred measure of prices — of 3.6% by year-end. With the costs of fuel and freight increasing because of the ongoing war, inflation may hit 5%, Thakoor said in an interview before the monetary policy committee meets on May 20 to discuss its interest-rate stance.