Given the country’s relatively high marginal propensity to import and the relatively high pass-through parameter, inflation in Mauritius is co-integrated with global inflation trends and it closely follows the worldwide evolution of commodity and energy prices. The recent hikes in inflation rates (10.3 percent headline and 12.1 year-on-year in November 2022) are a testimony to this. However, the decline in global commodity prices and of energy prices in the second half of 2022 prognoses that the inflation level will peak to around 10 percent in 2022 before subjugating to around 5 percent in the medium-term.