Weekly news update: Inflation in prices of essential medication

Expat news
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Written by Arnaud Tuyau on 23 August, 2024
This week, the headlines are dominated by the relentless surge in drug prices, a government-announced pay rise for civil servants stirring debate, and the harrowing murder of a Russian woman that has sent shockwaves through the community.

Health: Unchecked drug price inflation

In a troubling development, the cost of essential medications continues to escalate, with no signs of abating. The Pharmaceutical Association of Mauritius has raised alarms over the situation, attributing the price hikes to the 'regressive mark-up' system governing the market. Some medications have seen price increases as high as 80%, creating a burden on consumers.

For instance, Panadol syrup, once priced at Rs 190.06, now demands Rs 238.37. Similarly, Panadol Extra Tabs 100, previously costing Rs 285.20, is now sold at Rs 445.59. The Seretide inhaler, a vital product for many, has seen its price soar from Rs 548.30 to Rs 906.57.

These unexplained price surges have prompted calls for an investigation, especially since the same drugs are available at significantly lower prices in other nations.

Economic debate: Implications of civil servants' pay rise

The government's recent announcement regarding civil servants' pay has sparked widespread economic debate. With the Pay Research Bureau (PRB) report expected by the end of 2025, Prime Minister Pravind Jugnauth revealed that the recommendations will be enforced starting January 2025. Until then, civil servants will receive a 5% interim allowance, based on the 2021 PRB report, translating to a modest increase in basic salaries, capped at Rs 2,000 and no less than Rs 500.

This pay adjustment impacts approximately 90,000 civil servants, ostensibly aimed at boosting consumption and enhancing living standards. However, concerns loom over the potential strain on the State budget, rising public debt, and the necessity for tax adjustments to offset these effects.

Moreover, the Prime Minister has pledged a ‘back pay' equivalent to a year's salary, in line with the forthcoming PRB recommendations, to be distributed in December 2025. The 13th-month salary calculation will also be adjusted based on this report. Analysts warn that fulfilling this promise could jeopardize future fiscal stability, with significant repercussions for the Mauritian economy.

The increase in government salary expenditure will undeniably exert pressure on the State budget, potentially exacerbating the budget deficit and public debt. Meanwhile, trade unions have expressed concerns, questioning whether the adjustments will also address the working conditions of civil servants, as often suggested in PRB reports.

Russian woman brutally murdered

In a spine-chilling incident, the body of 29-year-old Russian national, Shanigula Zaliia, was found buried in La Marie on Wednesday, August 21. Zaliia, who had been missing since the previous weekend, was brutally stabbed multiple times in the chest, according to the autopsy report.

The accused, Pooryavirsingh Soondur, a 29-year-old computer engineer, has confessed to the murder and has been charged accordingly. Denied bail, Soondur remains in custody. The suspect disclosed that a heated argument, fueled by jealousy over the victim's social connections, led to the tragic outcome. After committing the murder, Soondur reportedly buried Zaliia's body in an attempt to conceal the crime. Zaliia had arrived in Mauritius in June and was residing in Flic-en-Flac.