Mauritius central bank says inflation 7.8% in June
The Bank of Mauritius (BOM) reported that the country’s inflation rate on a year-on-year basis is projected to reach 7.8% by June before declining to 7% by December this year.
In its last report BOM said that on the domestic front, while external developments are likely to adversely impact on inflation in 2011, “the expected narrowing of the output gap could also lead to an increase in domestic demand pressures in the near future”.
The bank also said that on a no-policy- change basis, it is expected that headline inflation could exceed 5% in June 2011 and reach around 8% by December 2011.
“Risks to the domestic inflation outlook have moved on the upside since the last quarter of 2010. The main risks originate from the supply side, where the pick-up in inflation in source markets, especially Asia, and the increase in international commodity prices could be higher than anticipated,” BOM said.
