Prices remain stable despite global crisis


10-January-2012

Despite economic turmoil around the world, prices have remained stable in Seychelles with only a slight rise in inflation figures in DecemberAlthough the country’s chief earnings are from tourism – where payments are in the weakening euro – and our costs particularly of fuel are in the US dollar which is appreciating, inflation increased by only 0.4% in December, figures released by the National Bureau of Statistics (NBS) on Friday show.

The year-on-year rate of inflation rose to 5.5 percent in December from 5.1 percent in the previous month mainly as a result of increases in the prices of fish, other food and non-food items.

The NSB said on a month-on-month basis, the main increases were in the prices of milk, cheese and eggs while clothing and footwear, transport and recreation costs were the main risers in the non-food category.

The increases are insignificant compared to when inflation surged by 63.3 percent after currency controls were removed in 2008.

World media have been closely following Seychelles’ prices and within minutes of the release of the figures on Friday the international press said “Seychelles inflation rate has been subdued since October 2009, when it was 25.6 percent”.

The All Items rate of inflation as at December 2011 stood at 2.6% while the rate of inflation for fish during the same period stood at 13.6%, Other Food 3.3% and Non-Food 1.7%.

On a month-on-month comparison, fish prices increased by 0.6% in December 2011 compared to
November 2011.

“Increases were recorded in the price of Other Food (0.5%), Non-Food (0.5%) and All Items (0.5%),” said the NSB.

“In the Other Food category, the main price increases were in milk, cheese and eggs (1.1%), meat (0.8%), vegetables (0.7%) and oils and fats (0.6%).

“In the Non-Food category, the main increase was recorded in the price of clothing and footwear (2.2%), miscellaneous goods and services (2.0%), transport (1.5%) and recreation and culture (1.2%).”

“On a year-on-year comparison, the fish index in December 2011 compared to December 2010 reflected a 20.5%.price increase.”

The NSB said in the Other Food group, all categories recorded price hikes, with significant increases in the oils and fats (13.8%), sugar, jam, honey and confectionery (9.0%), non-alcoholic beverages (6.3%) and milk, cheese and eggs (5.5%).

“In the Non-Food category, the year-on-year comparison showed increases in the price of recreation and culture (14.2%), restaurants and hotels (11.2%), housing, water, electricity and gas (9.8%) and transport (8.0%).”

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