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Mauritius' 2013 Inflation Seen Falling To 3.7 Pct: Finance Minister
A vendor sells chillies at a food market in Port Louis June 26, 2008. PHOTO BY REUTERS/Ed Harris.
By Jean Paul Arouff
14/09/2013
PORT LOUIS (Reuters) - Mauritius' annual average inflation rate is expected to fall to 3.7 percent this year from 3.9 percent in 2012, based on Statistics Mauritius estimates, Finance Minister Xavier Duval said on Friday.
At its last monetary policy meeting, the Bank of Mauritius said the headline inflation would be within a range of 4.1-4.3 per cent by December 2013.
"Globally inflationary pressures have receded given the economic slowdown and slower growth in commodity prices," Duval told Reuters in an interview.
"The latest estimates from Statistics Mauritius sees inflation at 3.7 percent this year down from 3.9 percent last year and 6.5 percent in 2011."
In June, Mauritius cut its key repo rate by 25 basis points to 4.65 percent to stimulate growth at a time when inflation was benign.
Mauritius expects a recovery in tourist arrivals following a rise of 11.5 percent in August to 73,454 from a year ago, Duval said.
"Arrivals estimates for September are also looking good and we have seen a 93.9 percent increase in arrivals from China to 26,047 over the last 8 months. Based on latest data which also show an increase in FDI (foreign direct investment) in the first half of the year, we are confident to start the last quarter in the best conditions," Duval said.
In June, Mauritius cut its 2013 economic growth forecast to 3.3 percent from 3.5 percent, anticipating a contraction in the construction sector and slower growth in financial services and technology.
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