Mauritius Inflation Holds Steady at 4% in August 2026

Mauritius's headline inflation rate remained flat at 4% in August 2026, according to the latest data published by the Bank of Mauritius (BoM) — the island's central bank. The figure was unchanged from July 2026 and follows a reading of 4.1% in June, suggesting a modest easing trend over the past few months. A year ago, in September 2025, inflation stood at just 3.4%, meaning price pressures have risen noticeably over the past 12 months, even if the rate now appears to be stabilising. **What is headline inflation?** Headline inflation measures the overall change in consumer prices across a broad basket of goods and services — including food, fuel, and housing. It is the most widely cited inflation figure and directly affects the cost of living for households across Mauritius. **What the Central Bank Survey covers** The Bank of Mauritius publishes its Central Bank Survey monthly to give a snapshot of key monetary and financial conditions in the economy. The August 2026 survey was released on 14 September, with the most recent weekly data covering the week ending 4 September. The survey tracks several critical indicators, including: - **The monetary base** — the total amount of money in circulation and held in reserve by commercial banks - **Net external assets** — the value of foreign currency and assets held by the central bank - **Domestic claims** — credit extended to the government and private sector within Mauritius These figures help analysts and policymakers gauge whether monetary conditions are tightening or loosening, and inform decisions on interest rates and liquidity management. **Money market operations** Separately, the Bank of Mauritius continues to manage short-term liquidity through its money market operations. Recent activity included the issuance of Bank of Mauritius bills and two-year government securities. The most recent auction of two-year instruments, held on 18 September, produced a yield of 4.34% — a key benchmark for borrowing costs in the financial system. **What this means** For everyday Mauritians, inflation at 4% means prices are rising, but not accelerating sharply. Households can expect the cost of groceries, utilities, and transport to continue climbing gradually. For businesses and investors, the stable inflation reading — combined with a 4.34% yield on two-year securities — signals that interest rate conditions remain relatively predictable in the near term. The Bank of Mauritius will be watching closely to see whether inflation dips back toward the 3% range seen in late 2025, or whether new pressures — such as rising import costs or fuel prices — push it higher in the months ahead. Source: ION News