Mauritius' 2014 annual inflation to range between 3.9 and 4.4%

Mauritius annual inflation for 2014 will range between 3.9 percent and 4.4 percent, Bank of Mauritius (BoM) has forecasted in its latest report on inflation. The Central Bank based its forecast on the expected growth of Mauritius economy in line with the prediction of the International Monetary Fund (IMF) which said in April that the country's economy will grow at the rate of 3.6 percent. The bank noted that inflation had increased in the first two months of 2014 due to temporary shocks on the price of basic foodstuffs following bad climatic conditions. However, the situation stabilized in the month of March when compared to the previous inflation report that had been released in October 2013, the bank added. In a study carried out by the Mauritius Central Bank in the month of February 2014, majority of the respondents said they expect the annual inflation rate to rise to 4.6 percent. However, in making its forecast for this year's inflation rate, BoM noted that it expected the temporary shocks on the price of basic foodstuffs to disappear. Elsewhere, the Central Bank noted that the job market will remain stable, with unemployment rate expected to remain at 8 percent in 2014.