Mauritius inflation dips in August, economists urge caution on rates

By Jean Paul Arouff PORT LOUIS (Reuters) - Consumer prices in Mauritius fell 0.3 percent in August, helping slow the annual average rate of inflation to 3.5 percent from 3.6 percent a month earlier, the first time the rate has changed in six months. The Indian Ocean island's year-on-year rate of inflation, used by the Indian Ocean island's policymakers to determine monetary policy, fell to 3.1 percent from 3.6 percent, Statistics Mauritius said. Even so, economists said the central bank should be prudent at an interest rate-setting meeting on September 30. "Although there has been a slight drop in inflation, we must be very cautious," said Eric Ng at economic consulting group Pluriconseil, citing the risk of rising oil prices to the import-dependent nation in the event of an attack on Syria. Official data showed the cost of food and non-alcoholic drinks fell 1.2 percent against the previous month, while alcoholic beverage and tobacco also fell 0.3 percent. Transport costs rose 0.7 percent and clothing and footwear prices climbed 0.6 percent during the month.