5 to 8 percent inflation is not what one would expect in an environment of stagflation. The last element of stagflation is that there is no job  BIS central bankers’ speeches  3  creation, and rising unemployment. In Mauritius, there is job creation – more than 9,500 jobs including 500 jobs for foreigners will be created in 2011.
Therefore forget about the notion of stagflation in Mauritius! Our economy is quite buoyant; we are optimistic that we will go beyond the 4.6 percent growth. That is why we opted to continue the normalisation process so that inflation does not come to play the spoilsport. Some additional points: The Monetary Policy Challenge (MP Challenge).