Deflation in Seychelles is expected to be short-lived due to a weaker currency and higher import prices. Consumer prices fell by 1% YoY in May. However, the Seychellois rupee depreciated by 8% after reaching a 2023 high against the USD in March, partly due to reduced foreign-currency inflows. Despite rising visitor numbers, tourism receipts fell 14% in April and May. Last month, the central bank maintained its benchmark interest rate at a record low of 2%.