Headline inflation rate unchanged at 3.6%
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Headline inflation rate remains unchanged at 3.6% from April to May, according to latest data released by Statistics Mauritius in its monthly Consumer Price Index (CPI) report. This rate is however on the decline compared to 5.3% for the twelve months ending May 2012. Statistics Mauritius introduced a new CPI series based on an updated basket of goods and service last month.
As regards year-on-year inflation, which is the methodology favoured by the Bank of Mauritius to fix its benchmark interest rate, it was 3.7% in May 2013. The Monetary Policy Committee of the Central Bank is scheduled to meet on June 17. Bank of Mauritius Governor Rundheersing Bheenick is for a targeting approach of inflation while Finance Minister Xavier Duval insists that the main priority is growth and that inflation is at bay. Economic observers are of the opinion that key repo rate should be maintained at 4.9% given the prevailing uncertainties on our main exports markets.
