Consumer prices in Mauritius rose more slowly in July as the island’s year-on-year CPI (Consumer Price Index) inflation rate for the period ended July 2014 reached 3.1% while the previous month’s year-on-year CPI inflation rate was 3.3%.
This was noted by the central bank in a communique on August 12, 2014, indicating that the price rise in the island economy is gradually tapering and customers are facing less erosion in their purchasing power.
Besides, the Bank of Mauritius (BOM) also computed headline and core inflation rates for the twelve-month period ended July 2014.
Central bank data showed that headline consumer price inflation was 3.9 percent in July while in the previous month it was estimated at 4.0 percent.
It may be noted that while headline inflation is a measurement of price inflation that takes into account all types of inflation that an economy can experience, core inflation does not count changes in the price of food and energy.
Hence, because food and energy prices can rapidly increase while other types of inflation can remain low, core inflation is a more stable measure and is used by central banks across the world as a better indicator of prices at a broader, economy level.
On the other hand, headline inflation is more useful for the typical household because it reflects all changes in the cost of living, including all important prices of food and energy.
For the twelve-month period ended July 2014, CORE1 inflation in the island economy stood unchanged from twelve-month period ended June 2014 at 2.9 per cent while CORE2 inflation stood at 3.0 per cent, up from 2.9 per cent in the previous period.
As a point of reference, a year earlier, for the twelve-month period ended July 2013, both CORE1 and CORE2 inflation stood at 2.8 per cent.
It may be noted that CORE1 inflation excludes “Food, Beverages and Tobacco” components and mortgage interest on housing loan from the CPI basket.
On the other hand, CORE2 excludes Food, Beverages, Tobacco, mortgage interest, energy prices and administered prices from the CPI basket.
Besides, TRIM10 inflation, which trims 5% of the most volatile items in the CPI on both sides of the distribution, edged down from 3.2 per cent in June 2014 to 3.1 per cent in July 2014. A year earlier, TRIM10 inflation stood at 2.6 per cent.
Image (Easy Voyage): Price rise in the island economy is gradually tapering and customers are facing less erosion in their purchasing power as year-on-year CPI (Consumer Price Index) inflation rate for the period ended July 2014 reached 3.1% against 3.3% in the previous month.
More business news on AfricaMoney