(Updates with analyst comments starting in third paragraph)
June 7 (Bloomberg) -- Mauritius’s inflation rate was little changed at 7.1 percent in May, the country’s statistics agency said, easing pressure on the central bank to increase its benchmark interest rate.
Inflation compared with 7 percent the month before, the Port Louis-based Central Statistics Office said in a statement on its website today. Prices were unchanged during the month.
The economy “has already absorbed the recent price increases on the world market,” Renganaden Padayachy, an economist at the Ebene-based Mauritius Chamber of Commerce & Industry, said by phone. “On this trend, it’s highly improbable that we will reach double-digit inflation by year-end. It is reducing pressure on the Bank of Mauritius to increase rates.”
The central bank increased its benchmark rate by 0.5 percent to 5.25 percent on March 28 after inflation accelerated for six consecutive months. The bank may tighten monetary policy further if inflation gets out of control, Governor Rundheersing Bheenick said in an interview with l’Express newspaper on May 30.
“Stability in the interest rate should prevail now,” Padayachy said.
The rupee weakened 0.2 percent to 27.7 against the dollar as of 11:25 a.m. in Port Louis.
--Editors: Philip Sanders, Alastair Reed
To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at firstname.lastname@example.org.
To contact the editor responsible for this story: Gordon Bell at email@example.com.