The month of May 2023 is mainly the prices of services (+0,5%)tobacco (+1,5%) and energy (+0.9%, after a drop to 0.7% in April) which are on the rise again, under the effect of the rise in petroleum products (+1,6%) : diesel + 1 cent and premium fuel + 5 cents. The price of gas, still benefiting from local aid, is stable, as is that of electricity. However, annual inflation has been decelerating since the start of 2024, after increasing by 4.2% in January, by 4.0% in February, by 4.1% in March, by 3.6% in April. and 3.4% in May. Over one year, inflation has slowed since during the first quarter, annual inflation was equal to or slightly above 4%.
Stability in food
Good news, the prices of manufactured products fell in May and are stable over one year, in Reunion as well as at the national level. As for food prices, they are stable Over one year, food prices increase more sharply in Reunion than at the national level (+6.4% versus +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 over a year for fresh products (+29.6% in May, +41.1% in April, +54.3% in March and +53% in February). Excluding fresh produce, food prices increased by 3% in Reunion vs +0.9% in France.
Manufactured goods even more expensive
Excluding clothing, shoes and health products, prices of manufactured products are increasing (+1% in Reunion vs +0.2% nationally). Over one year, tobacco prices increase by 8.2% in Reunion, less than in France (+8,7%).
Services on the rise
Over one year, the prices of services, which account for almost half of household consumption, increased by 3.4% in Reunion vs +2.8% at the national level. The cause is the rise in prices for transport services (+12.9% compared to +0.2% at the national level) and more moderately the prices of rents and related services (+5.6% over one year versus +2.7%). Communication service prices continue to increase in Reunion Island (+2,4%) as they continue their 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% vs +1,6%). The same goes for the prices of other services (+1.8% compared to +3.9% nationally).
Energy, a bad student
Over one year, energy prices increase more in Reunion than in France (+10.1% against +5.7%)Energy prices accelerate compared to April (+6,6%). This increase is driven by that of electricity prices (+21.7% over one year) and that of the prices of petroleum products (+3.3% over one year).
M. L.
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