(4 minutes read)
- The Central Bank of Seychelles (CBS) said a discussion with the private sector is needed to see if the current prices of commodities actually reflected all the factors that drive changes in prices
- When the exchange rate went up, the increase in the price of goods was quite significant
- But now with the exchange going much lower, the decrease in the prices of goods has been very small, according to the Bank’s Governor, Caroline Abel
- She pressed for more cooperation from retailers and service providers in Seychelles to contain inflation
The Central Bank of Seychelles (CBS) said a discussion with the private sector is needed to see if the current prices of commodities actually reflected all the factors that drive changes in prices.
When the exchange rate went up, the increase in the price of goods was quite significant. But now with the exchange going much lower, the decrease in the prices of goods has been very small, according to the Bank’s Governor, Caroline Abel. She pressed for more cooperation from retailers and service providers in Seychelles to contain inflation. She assured continued vigilance in both national and international scene to keep the prices under check in spite of the country’s improving economic situation.
The external factors that affect inflation include the COVID-19 situation in key tourism and trade markets, political unrest in certain countries that have a direct influence on Seychelles’ economic activity and rising global food prices, among others. The inflation rate of the Seychelles Rupee remained high at 10.62 percent year on year. There are encouraging signs on the foreign exchange rates. The US dollar remains below SCR16 and the Euro is below SRC18, lower compared to earlier in the year. The paradox is that these positive vectors are not affecting the uncomfortable inflation level.
The Central Bank of Seychelles also spoke of the measure they are now taking to ensure better access to information for the public. The CBS has now added a dedicated page on its website, where members of the public can make their requests directly to the information officer, who will then provide them with a response and the information asked for.
