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Seychelles is facing a 13 percent average increase in the price of food and services between December 2019 and April this year, according to the Central Bank. The economy, according to the bank, remains fragile and the level of uncertainties remains high, although there have been some improvements in the economic parameters thanks to higher tourist inflows and spending
Seychelles is facing a 13 percent average increase in the price of food and services between December 2019 and April this year, according to the Central Bank. The economy, according to the bank, remains fragile and the level of uncertainties remains high, although there have been some improvements in the economic parameters thanks to higher tourist inflows and spending.
In April prices went up by an average of 0.4 percent compared to the month of March and the year-on-year comparison showed an increase of 2.2 percent. Inflation over the 12 months period has increased by 7.5 percent. Global developments have had a massive impact on the Indian Ocean Island, which largely depends on tourism for its income. The covid-19 pandemic exacerbated by the war between Ukraine and Russia is having an impact on the prices of commodities in the country.
A positive development is that since the start of the year, the country has seen a significant increase in the number of tourist arrivals and tourism-related income. Between January and April, Seychelles received a total of 110,155 visitors as compared to only 21,030 for the same period last year.
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This translated into a direct foreign exchange earning estimated at US$184 million for the first four months of the year compared to only US$36 million for the same period in 2021. The foreign exchange in the market stands at US$317 million, which is 70 percent higher than the same period last year. For the same period this year, the demand has been US$301 million, which is lower than the supply. The reserves of CBS are at US$666 million as of May 24, with US$507 million as the net international reserves.
