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Price increase : Combating inflation

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Price increase : Combating inflation

Take steps to balance supply and demand

Recent price hikes in everyday consumer products have astonished consumers, leading to growing concerns about inflation in Mauritius, especially among middle-class and low-income individuals.

Salary increases, including the recent wage compensation by employee category, must be revisited to offset the rising cost of living adequately.

Inflation in Mauritius is driven by several factors, including the imbalance between supply and demand, rising production costs, and the continuous depreciation of the rupee against foreign currencies, resulting in increased prices of imported goods. Additionally, the government identifies exogenous causes, such as increased freight costs and higher purchase prices from local suppliers.

According to the latest IMF report, the inflation rate in Mauritius stood at 5.2 % in January 2024, down from 7 % in 2023 and 10.8 % in 2022. However, despite this decrease, the population perceives a significant impact on their daily expenses.

Real inflation is estimated to be around 10 %, indicating the need for Mauritius to review its production, storage, and marketing chains for food products. Implementing these preliminary measures is crucial to achieving a certain level of food self-sufficiency and addressing the current situation.

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