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# [MAURITIUS] Inflation hits 4.1% in Q2 2026: energy, diesel and bread squeeze household budgets
- URL: https://businessoi.media/en/maurice-inflation-a-4-1-au-t2-2026-energie-diesel-et-pain-plombent-le-pouvoir-dachat-en/
- Published: 2026-07-21T08:49:40.000Z
- Updated: 2026-07-21T08:49:40.000Z
- Description: Mauritius's CPI rose +2.4% in Q2 2026, pushing annual inflation to 4.1%. Electricity +14.4%, diesel +18.2%, bread +42.9%: households are facing unprecedented cost pressure.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Économie, Flash de mi-journée, #en

Mauritius's consumer price index (CPI) rose **2.4%** in the second quarter of 2026, pushing the annual inflation rate to **4.1%** — up from 2.9% a year earlier. The acceleration is eroding household purchasing power as global energy tensions ripple through the island's import-dependent economy.

## Energy: the main driver

The housing and energy category surged **+6.6%** over the quarter. Electricity climbed **+14.4%** and household gas jumped a record **+26.4%** — a blow that falls hardest on lower-income households. Transport was equally severe: up 4.8% in total, with diesel at **+18.2%**, petrol at +9.9% and taxis at +12.6%. These increases flow directly into logistics costs and, ultimately, into retail prices.

## Food essentials under pressure

Food prices rose **+2.6%**, but some staples have surged dramatically: bread is up **+42.9%** year-on-year, cooking oil +13.6%. These spikes on everyday products represent direct pressure on the island's most vulnerable households.

## The Bank of Mauritius has already responded

On May 20, 2026, the Bank of Mauritius raised its key rate by 25 basis points to **4.75%**. Governor Dr Priscilla Muthoora Thakoor justified the move as necessary to "contain inflationary pressures and preserve macroeconomic stability." The institution now projects inflation at **5.5%** for all of 2026 — well above its 2-5% target band.

## Why it matters

Mauritius's 4.1% inflation rate significantly outpaces its main trading partners — France (0.9%), the United States (2.7%) and the United Kingdom (3.4%). For a small, highly import-dependent open economy, this divergence weighs on export competitiveness and makes daily life more expensive. With GDP growth already revised down to **2.8%** and air tourist arrivals falling -8% in April, the squeeze on purchasing power risks dampening domestic consumption in the second half of the year.