- Inflation slows to 0.51% in September, lowest since May
- Falling fish prices offset rising food costs
VICTORIA, SEYCHELLES – Seychelles’ inflation eased to its lowest level in four months in September, offering relief to households and policymakers in the import-dependent island nation.
According to the National Bureau of Statistics, consumer prices rose 0.51% year-on-year in September, down from 0.55% in August – continuing a gradual retreat from July’s seven-month high of 0.64%.
“The All Items Index in September 2025 stood at 126.97 compared to 126.33 in September 2024, representing a year-on-year inflation rate of 0.51%,” the report said. The main driver of the moderation was a 6.16% drop in fish prices, deepening August’s 4.74% decline.
The plunge in fish prices shaved 0.08 percentage points off the overall inflation rate, offsetting price pressures from other categories such as oils, fats, vegetables, fruits, milk, cheese and eggs. Non-food inflation remained muted at 0.34%.
Core inflation still elevated
On a monthly basis, consumer prices slipped 0.05% in September compared with August, the report added. Core inflation – which excludes volatile fish and energy prices – stood at 0.69%, slightly down from 0.72% in August.
This suggests that underlying price pressures persist despite the encouraging headline figure. The 12-month average inflation rate stood at 0.59%.
Economists say the trend provides breathing space for policymakers as the Central Bank of Seychelles maintains a supportive monetary stance. The bank has held its policy rate at 1.75% since early this year to sustain growth in a tourism-led economy vulnerable to external shocks.
Growth momentum softens
Economic growth in Seychelles has remained positive but slowed in recent quarters. Output expanded 3.3% in the first quarter of 2025 and 4.6% in the second quarter – below the robust 11.3% and 5.2% recorded in the third and fourth quarters of 2024.
In June, the International Monetary Fund (IMF) trimmed its 2025 growth forecast to 3.2% from 4.3%, citing weaker tourism demand from Europe. It also expects inflation to average 1.2% by the end of 2025 – a figure that now appears optimistic given the current slowdown in price increases.
Still, the easing inflation is a welcome sign for Seychellois consumers facing the ripple effects of global price swings. With subdued non-food inflation and slowing headline rates, the outlook for stable prices in the Indian Ocean archipelago appears brighter heading into the final quarter of the year.
