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.