“In July 2022, consumer prices increased by 1.6% in Reunion, after + 0.6% in June, + 0.7% in May and April”, explains, in the introduction to its index of consumer prices, INSEE. A much larger increase than in previous months which directly affects the purchasing power of Reunionese. Over the past year, inflation has been getting higher and higher. It fell from 4.2% in June to 5.6% last month.
How does INSEE explain this new sharp rise in prices in July? “They are increasing particularly for energy and services. Prices for manufactured goods are also increasing, but to a lesser extent.” In detail and without great surprise, with +2.1% in July, the increase in the prices of services is accelerating. “It is driven first by the sharp rise in transport prices (+ 25.1%), mainly due to the increase in air prices in high season, the magnitude of which is however less than in July 2021” , notes INSEE.
+ 43.4% on fuel prices in one year
But the biggest increase is once again to be credited to petroleum products: +9.5% in July after +4.4% in June and +1.5% in May. The rise in petroleum product prices is accelerating in line with international tensions impacting world commodity prices. Unleaded and diesel prices increased by 9.0% and 12.6% respectively. The only note of satisfaction is the drop in the gas cylinder by 5.9%. But, over one year, the prices of petroleum products have exploded and recorded an increase of 43.4%! It should be noted that, for next month, Reunionese motorists will be able to take advantage of a welcome drop at the pump, driven by state aid which will drop from 15 cents to 25 cents per liter for two months.
On the food side, INSEE recorded a slight drop of 0.2% in July. “Like last May and June…