INFLATION REACHES RECORD LEVEL

The official rate of inflation reached an annual rate of 17.1% in May according to the latest figures released by the National Statistics Bureau (NSB). This is the highest official inflation rate on record, according to our assessment, since 1979.

The inflation rates and the statistics do not, however, express the real hardship the families are facing on a daily basis especially the constant shortage of goods. Nevertheless, according to the statistics the price of fish, the staple food of most Seychellois, is soaring ahead at 13.9% annually while for other food items inflation rate was 21.1%. In fact, the inflation rate for fish was tampered by a glut, which always precedes the South East monsoon. May was a particularly good month for fish catches (or a bad month for fishermen) as the inflation rate for fish rose by a mere 0.8% compared to the same month of last year.  And on a month on month comparison, Fish prices decreased by 4.3% in May compared to April. The inflation rate for non-food items has reached 15.8% and rising.

One aspect of the inflation index which is ridiculous is the figures for inflation on transportation. Whilst it is true that for almost everyone who rides on buses provided by the SPTC, the parastatal, the daily fare has not increased very much, other modes of transportation such as taxis have more than doubled. It is small comfort to learn that the index for housing, water, electricity and gas recorded a decrease of 1.9% in prices in May 2008 compared to April 2008, due to the decrease in the price of LPG.



August 15, 2008
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles