STC price review-Drop in basic food prices reflects fall in exchange rates |29 April 2009

It is also in line with President James Michel’s determination to lower the cost of living and anchor household expenses on foods.

On various occasions the head of state has repeated that one of his priorities is to lower the cost of living and has personally instructed the STC to look for sources from which they can import goods at cheaper prices so the benefits can be passed on to consumers.

As of Monday this week, prices of the basic foods have come down by an average of 11%, with some cuts as high as 22%.  

This review of prices is for a guaranteed period of three months until July 31, to bring stability.

Prices of food commodities can go up as well as down. Whenever the combined effect of the factors influencing the costs shows a decrease, the STC has said it will pass the benefit on to the public, as it has done in this review.

The final prices of foods are influenced by four major factors – world market prices at origin, local exchange rates for currencies in which the products are priced, freight and insurance rates to bring the goods to Seychelles, and various local costs after arrival.