Central Bank of Seychelles: Consumer prices should be lower given the improved exchange rate

The Central Bank of Seychelles (CBS) said a discussion with the private sector is needed to see if the current prices of commodities actually reflect all the factors that drive changes in prices.
“When I personally look at prices of commodities in Seychelles, I have noticed that 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,” the Bank’s governor, Caroline Abel, told a press conference on Friday.
Abel said this needs to be looked at to ensure that prices can better reflect all factors for the benefit of the country. She urged for more cooperation from retailers and service providers in Seychelles, an archipelago in the western Indian Ocean.
The governor also reiterated the need for continued vigilance, despite the country’s improving economic situation.
 “It is important that we continue to observe key factors both locally and internationally, as there are things, we cannot control that can have an adverse effect on Seychelles’ economic stability.”
She said that these external factors 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.
Abel shared some economic statistics which shows that the inflation rate of the Seychelles Rupee remains high at 10.62 percent year on year. There are encouraging signs on the foreign exchange rates as the US dollar remains below SCR16 and the Euro is below SRC18, lower compared to earlier in the year.
“One key component that affects inflation rate is the foreign exchange rate. Along with that, global prices also affect the price of goods locally, which leads to an increase or decrease in local prices,” she added.
The Central Bank of Seychelles also spoke of the measure they are now taking to ensure better access to information for the public in relation to the Access to Information Act of 2018. The Act gives the public the constitutional right of access to information held by public authorities performing a governmental function.
“This measure shows the Central Bank’s commitment towards upholding the values of good governance, transparency and accountability,” said Abel.
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.

Source: Seychelles News Agency