Prices in Mauritius Climb Over 50%, Impacting Consumers

Several industries in Mauritius are experiencing a sharp decline in sales, with some products seeing price increases of over 50% and certain businesses reporting drops of more than half. This trend reflects a widespread decrease in consumers’ purchasing power, prompting concerns about an imminent economic crisis.

The retail sector is particularly hard hit. Ignace Lam, CEO of Intermart, reports a noticeable slowdown.

“While not as severe as in other sectors like clothing, it’s clear Mauritians are tightening their belts, even on food products,” he explained.

For example, the price of a chocolate bar has risen from Rs 60 in January to Rs 300 today.

Lam questions whether even high-income earners would accept such prices, noting that the positive consumer sentiment seen a few months ago has vanished after the 2025-26 Budget presentation.

Currently, consumers prioritize essential goods and avoid unnecessary spending.

The construction materials sector is facing even greater difficulties. Hemraz Ramphul, owner of H. Ramphul hardware store, reports a decline of over 50% in sales.

“Customers used to queue at suppliers; now, there are almost none,” he lamented. This drop is linked to a slowdown in construction projects across both private and residential sectors.

Similarly, TFP, a major furniture company, is struggling. CFO Mousheerl Maharaullee explained that the company has resorted to promotions and installment plans to keep operations afloat. “Our survival is at risk,” he admits.

The situation is even more concerning according to Raj Appadu, president of the Unified Traders Front.

He recalled that the downturn in commerce isn’t new, citing rising costs of raw materials and freight since last year.

The situation worsened with the rising dollar and a shortage of foreign currency in the local market.

Appadu estimates that sales have fallen by more than 50%. He warns that the combination of declining purchasing power, rising rental costs, taxes, and other charges could lead to many business closures.

“Shopkeepers are struggling to stay afloat. If this trend continues, we may see a wave of business shutdowns in the coming months,” he warns.

All sources agree: Mauritian consumers are buying less, and businesses are finding it increasingly difficult to operate.

If this decline persists, it could have serious repercussions on employment, investments, and the overall economic stability of the country.

Source: Defi Media