Inflation down to 8.3%, but economists warn not to rejoice yet

Mauritius’ year-on-year inflation for April 2023 was calculated at 8.3%, which is a notable decline from the previous year’s figure of 11.3%. Meanwhile, headline inflation for the 12 months ending in April 2023 stood at 10.9%, as opposed to 7.0% for the same period last year.

Inflation measures how much more expensive a set of goods and services has become over a year.

In April 2023, the Consumer Price Index (CPI) slightly decreased by 0.1 point, or 0.1%, from 131.1 in March 2023 to 131.0. This slight drop was mainly attributed to a decrease in vegetable prices, Statistics Mauritius revealed.

The data suggests a positive trend in inflation rates for Mauritius, as year-on-year figures demonstrate a decrease in inflation rates. The decline in vegetable prices also contributed to the slight drop in CPI, indicating some relief for consumers in the cost of living.

According to economist Takesh Lucko, the recent drop in inflation is simply a result of a “mechanical decrease.”

Lucko explained to Defi Media that the calculation of inflation is based on comparing the household basket of goods before and after certain events, such as the war in Ukraine and the post-war period.

He cautioned against misinterpreting the figures and assuming that purchasing power has increased.

Lucko also argued that the decrease in food prices should have happened much earlier, given the decrease in freight costs since the post-Covid period. 

Source: Defi Media