in May, prices increased by 0.2% in Reunion

in May, prices increased by 0.2% in Reunion
in May, prices increased by 0.2% in Reunion

In May 2024, the consumer price index increased by 0.2% in Reunion as in the previous month. The prices of services continue to increase and those of energy are on the rise again, while the prices of manufactured products are falling. As for food prices, they are stable. Year-on-year, inflation slowed in May (+3.5%), compared to the first three months of the year during which annual inflation was equal to or slightly above 4%. The consumer price index increased more in Reunion than at the national level (+2.3%). We publish the INSEE press release below (Photo: www.imazpress.com)

In May 2024, the consumer price index continues to rise in Reunion (+0.2%, as in April). The prices of services, energy and tobacco are increasing, while those of manufactured products are falling. As for the prices of food products, they are stable.

Prices of services increased in May (+0.5%, as in April), after stability in March and a decline in January and February. This increase is mainly linked to that of transport service prices (+9% in May after stability in April) and in particular air transport. The prices of health services are also increasing (+0.6%). Prices of rent and related services and other services were stable in May after an increase in April. Prices of communications services are stabilizing again after falling the previous month.

In May, energy prices started to rise again (+0.9% after a drop of 0.7% in April) due to the increase in petroleum products (+1.6%). The price of diesel increases by 1 cent and the price of premium fuel by 5 cents. The price of gas, still benefiting from local aid, is stable, as is that of electricity.

Prices of manufactured products decreased in May (-0.2% after +0.5% in April). This decline is linked to the decline in the prices of health products (-0.4%) and the prices of manufactured products excluding clothing, shoes and health products (-0.2%), combined with the stability of prices of clothing and shoes.

Food prices were stable in May after a drop of 0.8% in April. Prices of fresh products are down (-0.4%); they had increased significantly at the start of the year following the passage of cyclone Belal. Excluding fresh products, food prices are stabilizing after three consecutive months of increases.

In May, tobacco prices increased by 1.5%.


– Prices increase over a year –

Over one year, from May 2023 to May 2024, the consumer price index increases more in Reunion (+3.5%) than in France (+2.3%). However, annual inflation has been decelerating since the start of 2024, after increasing by 4.2% in January, 4.0% in February, 4.1% in March and 3.6% in April. Prices increase more strongly over one year in Reunion than at the national level for services, food and energy. The prices of manufactured products are stable over one year in Reunion as well as at the national level. For tobacco, the price increase over one year is less on the island than in France.

Over one year, prices of services increased by 3.4% in Reunion (+2.8% nationally). Services account for almost half of household consumption. The increase in prices of services is particularly due to the increase in prices of transport services (+12.9% compared to +0.2% at the national level). The prices of rent and related services are also increasing (+5.6% over one year compared to +2.7%). Prices for communications services continue to increase in Reunion (+2.4%), while they continue to decline nationally (-6.8%). As for the prices of health services, they are increasing a little less sharply in Reunion than at the national level (+1.4% compared to +1.6%). The same goes for the prices of other services, which account for half of the service budget of Reunion households (+1.8% compared to +3.9% at the national level).

Over one year, energy prices increased more in Reunion than in France (+10.1% compared to +5.7%), Energy prices accelerated compared to the month of April (+6. 6%). This increase is driven by that of electricity prices (+21.7% over one year) and that of petroleum product prices (+3.3 over one year).

Over one year, food prices increased more sharply in Reunion than at the national level (+6.4% compared to +1.3%). Food accounts for 16% of the household budget in Reunion. The increase in food prices over one year is, however, a little less than in previous months (+10.5% over one year in February, +10.1% in March and +8.2% in April). This is the consequence of the slowdown in prices of fresh products over one year: in May 2024, the prices of fresh products increased by 29.6% in Reunion, an increase lower than that observed since February (+53% over one year). in February, +54.3% in March and +41.1% in April). At the national level, prices of fresh produce increased by 3.5% year-on-year in May.

Excluding fresh produce, food prices increased by 3% in Reunion (+0.9% in France).

Over one year, the prices of manufactured products are stable in Reunion and at the national level. Manufactured products represent 29% of the household budget in Reunion. Over one year, the prices of clothing and shoes decreased in Reunion (-3.2%), while they increased in France (+0.6%). The prices of health products are falling on the island (-1.2%), as at the national level. Excluding clothing, shoes and health products, the prices of manufactured products are increasing (+1% in Reunion and +0.2% nationally).

Over one year, tobacco prices increased by 8.2% in Reunion, less than in France (+8.7%).

News from Reunion, Economy, Insee

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