The government’s price-fixing and control mechanism on essential commodities through the Maximum Price of Essential Goods Regulations, 2021 appeared to positively affect prices. Inflation seemed relatively under control in June 2021. But in November, food and non-alcoholic beverages prices rose by 1.8%. The cost of furniture, household equipments, and standard household equipments have gone up by 2.1% on average.
Year-on-year (Y-o-y) inflation was valued by Statistics Mauritius at 6.4% in November 2021, compared to 3.1% in November 2020. Headline inflation for the 12-months ending November 2021 worked out to 3.7%, compared to 2.4% for the 12-months ending November 2020.
The increase in prices is mainly due to a rise in global prices fuelled by the crisis in the shipping industry. Around the world, the cost of transporting containers has increased on average between 300-800%.
Retailers complain about the double impact of the pandemic and the rise of shipping rates. Their end-of-year sales are relatively low compared to last year.
The government expects that the early disbursement of the end-of-year bonus (December 10, instead of the 21st) for the 80,000 civil servants will give the retail sector the boost it has been waiting for.
