In May 2024, the consumer price index increased by 0.2% in Reunion as in the previous month, reports INSEE. 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, specifies the polling institute.
The INSEE press release:
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.
The 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, the prices ofenergy started to rise again (+0.9% after a drop of 0.7% in April) under the effect of 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.
The prices of manufactures 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.
The prices offood 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, prices of tobacco increase by 1.5%.
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, the 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 a year, the prices ofenergy increase more in Reunion than in France (+10.1% compared to +5.7%), Energy prices are accelerating compared to 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 a year, the prices offood increase 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 manufactures 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, the prices of tobacco increased by 8.2% in Reunion, less than in France (+8.7%).
