The overall consumer prices index shot up +5% impacted by major components including rent and food between 2004 and 2006. Energy prices added to the index inflationary trend and soared +25.7% on the same period.

By January 2005, the overall consumer prices index had declined a modest -0.6% against the previous month but regained +0.6% in February and +0.7% in March. The last three months of the year, the overall index rescinded but still rose +1.5% in 12 months.

In 2006 and up to September, price increases appeared subdued month-on-month by comparison but the index had already gained +2.1% against January of the previous year. Between February and May, the overall index averaged +0.4% price increases and grew+1.5% between January and September.

FOOD PRICES INDEX : in 2004 and expressed in variances against the previous month, the food price index remained mostly above the overall consumer prices index especially in June (food index +0.5% overall prices index +0.1%). July and August recorded the index strongest price cuts respectively -1% and -1.5% due to poor weather conditions affecting consumers’ consumption. The food price index nevertheless regained momentum in November and increased +0.2% and +0.3% the following month. In 12 months, the index declined -0.6% impacted solely by price cuts during the summer period in an attempt to boost demand.

In January 2005, the food price index stayed stable against the previous month but shot up +0.5% in February and +0.9% in March. From April the index fell -0.3% and initiated significant declines in June -0.2% July -0.8% and August -0.7% due to fresh products. The last three months of the year, the food price index rose +0.4% month-on-month. In 12 months, the index grew +0.7%

From January 2006, and against the previous month, the index rose a steep+0.4% and +0.6% the following month. April recorded the strongest food price index increase +0.7% and remained stable for two additional months.

FRESH PRODUCE PRICES INDEX : the fresh produce price index skyrocketed +8.1% between January 2004 and September 2006. In 2004, although the index fell a substantial -4.5% from February against the previous month, from March, a steep +3.9% gain heralded an upward trend offset however by strong price cuts in July -8.8% and August -12.5%. September recorded the strongest price index increase +7% against the previous month, in addition to October +1%, November +1.4% and December +2.7%. In twelve months, the index increased +0.5% impacted downwards by price cuts observed in the summer season.

In February 2005, the fresh produce price index rose +0.4% against December already steep +2.7% increase. February and March recorded the steepest increases respectively +3.4% and +7.1% . The subsequent increases in May +2.9%, in October +1.5% in November +2.2% and in December +2.9% added to the index inflationary trend. Only four price cuts occurred that same year: in April -2.6%, in June -2.9%, in July -7% and in August -6.9%. As a result, the fresh produce price index climbed +1.5% in one year.

2006 heralded however further price increases as the January fresh produce price index rose +2.7% and jumped +4.5% in May preceded by substantial increases in February +2% and April +1.2% while March -0.2% price index cut stayed unnoticed.

RENT PRICES INDEX : in three years, the rent index jumped +9.6% and recorded stable increases month-on-month and throughout the entire period. In 2004, the rent index rose on average +0.3% a month. As a result and in one year, the index increased +3.1% 

By 2005 the rent index regular increases remained unchanged, on average +0.4% and rose +3.2% in one year. January 2006 saw the rent index remain on an upward trend and up to September, the index had already gained +2.6%  

ENERGY PRICES INDEX : in 2004, the energy prices index first increase, +1.9%, occurred in March when crude oil prices per barrel gained +8.4% from January of the same year. May +2.9%, August +2.1%, and October +3.2% recorded the strongest increases simply mirroring, although to a lesser extent, crude oil prices per barrel : in May +13.9%, in  August +12.8% and in October +14.8%. In one year, as crude oil prices per barrel soared +28% the energy prices index increased +9.1% 

In 2005, the energy prices index only recorded four price cuts and kept increasing month-on-month, gaining +3.5% in September alone. In one year, the index grew+10.4% and oil prices per barrel +27.8%

By January 2006, the energy index had regained momentum +1.8% against the previous month and recorded modest increases, +2.4% in April its highest increase yet, compared with previous figures. In September, the index fell -2.6% but had climbed +4.7% between January and June while oil prices rose to a record U$D/barrel 70.3. Between January and September, the energy prices index rose +3.4% 

CONSUMER PRICES INDEX: FRENCH OVERSEAS DEPARTMENTS 2004 to SEPTEMBER 2006

Of all French Departments and Territories (DOM TOM), French Guyana remained overall best performer due to lower consumer price indices including major components such as food and energy. 

In December 2004 alone, and against the previous month, Guadeloupe recorded a major price index increase +1.4% while all other departments averaged +0.4% In Reunion, the overall prices index roller coaster patterns contrasted with French Guyana’s more stable index despite various increases. Martinique’s overall prices index increases averaged +0.4% month on month with near to no price index cuts.

In 2004 the overall consumer prices index increased +1.3% in French Guyana compared with +2.5% in Martinique +3.2% in Guadeloupe and +2.6% in Reunion. The following year the index increased the most in Reunion +2.7% and climbed +1.3% in Guadeloupe compared with +1.4% in French Guyana and +1.7% in Martinique.

In 2006 and up to September, the index shot up +3% in Martinique and rose +1.2% in Reunion +1.7% in French Guyana and +1.9% in Guadeloupe.

FOOD INDEX : French Guyana’s inexpensive food prices accounted for such overall index disparity due to fresh products cultivated in abundance locally by the Hmongs, immigrants from North Laos and North Vietnam who settled in from the 70’s.

Inversely, Martinique, Guadeloupe and Reunion import fresh fruit and vegetables massively. In 2004 the food index rose +0.5% in French Guyana, while Guadeloupe’s jumped +4.1% and Martinique’s and Reunion’s each grew +2.1%

In 2006 and up to September, French Guyana’s food index kept decreasing -0.9% while all other departments recorded steep increases : Martinique’s food index grew +3% Guadeloupe’s +1.3% and Reunion’s +2.2%

From 2004 to September 2006 the food index increased +1.5% in French Guyana but jumped +8% in Martinique and +6% in Reunion. In Guadeloupe, the food index rose +2.5% since major price cuts counterbalanced most upwards trends on the same period. Month-on-month and expressed in variances, the food price index in Martinique and Guadeloupe performed similarly from February through August 2004 but quickly picked up in Guadeloupe from that month. Such food price index disparity stayed until May of the following year but rescinded from November with Martinique recording higher prices. Reunion’s food prices index recorded major increases while French Guyana’s stayed subdued with the exception of January 2006 +2.3% and in May +1.1%

Out of the food index, French Guyana’s fresh produce prices index increased +2.8% in 2004 while Martinique’s grew a modest +1.6% by comparison. By contrast Guadeloupe’s shot up +10.6% and Reunion’s +8.5%.

In 2005 French Guyana’s food index fell -2.3% Reunion’s -6.4% and Guadeloupe’s -6.7% so as to counterbalance the previous year inflationary trend. Martinique’s fresh produce price index by contrast jumped +5.4% with the effect of aligning its own overall fresh produce price indices with the other Departments.

In 2006 and up to September, Reunion recorded the strongest fresh produce price index increase +10.4% while French Guyana’s price index declined a substantial -6.6% unlike Guadeloupe’s +5.1% and Martinique’s even steeper +7.4% 

 From 2004 to September 2006, the index strongest price cut was recorded by Guadeloupe’s -2.6% due to major price declines on the same period. French Guyana’s fresh produce price index by contrast increased +6.9% but Martinique and Reunion recorded each the strongest price increases respectively +13.4% and +16.9%

Month-on-Month and expressed in variances, Martinique’s fresh produce prices index recorded its steepest increase +7.8% in June 2004. The following year, the index increased as well. In 2006, prices fell -5.4% in January, and -5.6% in April, but the index remained above +3% increases from August. Similarly, Guadeloupe’s fresh produce prices index jumped +7.9% in June +5.1%, in November and an additional +6.4% in December. In July 2005 the index climbed +6.9% but stayed volatile from January 2006 with the steepest increase recorded in August +6.4%. By contrast in 2004, French Guyana’s fresh produce price index increased solely above 3% in May to +5.5% The following year, the index increased +4.7% in February and again +5.4% in May. The steepest increase occurred in January 2006 when the fresh produce price index jumped +10.7% against the previous month, but price cuts averaging -3.3% stopped the index from further inflationary trends with the exception of the usual May +4.7% increase.

Reunion recorded it strongest fresh produce price index increases in February , March and in November 2004 respectively +12.3% +15.6% and +10.5% and, including the following year: in March the fresh produce price index increased +9.4% and in April +8.9% with a major -10% index cut in July (winter). November however saw the index regain +9.6%. In 2006 up to September the index proved extremely volatile, jumping +9.6% in March +12.4% in April and +7% in May. A major -20% price cut in June was followed by -6.6% dip in July.

 RENT-WATER-GARBAGE COLLECTION: unlike food, the rent index recorded the mildest increases overall in Guadeloupe : in 2004 Guadeloupe’s rent index rose +1.8% and +1% in French Guyana but climbed +3.5% in Martinique and a steep +5% in Reunion. With tax rebates up to 50% applicable to rentals for a fixed period in these overseas departments, Martinique and Reunion benefited the most from the construction index increases and from investors’ interests: in 2005 the rent index rose +4% in Reunion, +3.3% in Martinique, +2.6% in French Guyana and a modest +0.3% in Guadeloupe.

French Guyana followed a near similar pattern averaging however less than +0.4% increases with the exception of July 2006 when the index gained +2.7%. Reunion’s rent index by contrast recorded major increases +2.4% in February 2004 in addition to regular +0.2% increases month-on-month and +1% in November. In 2005, Reunion’s rent index grew +1.3% in June and +1.1% in November and repeated the usual +0.2% increases month-on-month.

ENERGY INDEX : energy prices in the Departments and Territories, unlike France, are solely determined by decree exclusively applicable to them. Crude oil imports in French Guyana originate from Brazil and Venezuela, Reunion’s from Singapore and Australia while Martinique’s oil refinery allows for better distribution locally as crude oil is mostly imported from Northern Europe. In 2004 the energy prices index increased +6% in Martinique, +6.3% in French Guyana, +6.9% in Guadeloupe, and the least in Reunion +5.5% 

The following year the index increased anew +6% in Martinique but jumped +10.8% in Guadeloupe and +10.2% in Reunion compared with +8.7% in French Guyana. In 2006 the energy index jumped +12.7% in Martinique, +11% in Guadeloupe, and +7.7% in French Guyana. Reunion recorded the lowest price index increase by comparison +2.4%

Between 2004 and up to September 2006 Reunion’s energy index increased the least, although to inflationary levels, +19.1% along with French Guyana’s +20.9% compared with Guadeloupe’s +31.5% Martinique’s +26.7%.

OIL PRODUCTS INDEX: French Guyana and Reunion performed best overall as regards oil products price indices. In 2004 Reunion‘s oil products price index increased +7.7% followed by Martinique’s +8.1%. Guadeloupe’s rose +9.1% and French Guyana’s +9.2% The following year however, only Martinique recorded a modest increase by comparison +8.4% due to its refinery capacities while the index jumped +14.3% in Guadeloupe, +12.5% in French Guyana and +14.2% in Reunion.

In 2006 and up to September, Reunion’s oil prices index rose +1.9%, French Guyana’s jumped +9.1% while Martinique’s offset the previous year modest increase and soared +15.6%. Guadeloupe’s index grew nearly similarly +14.2%. Between 2004 and up to September 2006, Reunion’s oil prices index increased the least, among all departments,  +25.4% followed by Reunion’s +28.8%. Martinique’s skyrocketed +35.4% and Guadeloupe’s +42.4%.

In 2004 and expressed month-on-month in variances, Martinique’s oil products price index recorded a single major increase +2.1% in May while the following year prices rose +2.7% in March and in May each month, in addition to +4.4% in April and +3.2% in August. Two price index cuts -2.7% and -1.8% in November and in December slightly counterbalanced these gains but in 2006, prices rose regularly on average +2.4% and for five months. In the third quarter, the oil products price index stayed tamed (0% in July +1.7% in August and +0.9% in September) while crude oil prices per barrel had reached new records.

Guadeloupe’s oil products price index performed inversely as major increases occurred more frequently in 2004. In 2005, increases averaged +5.2% in three months, including a steep +9.3% in May, while the index kept rising in 2006.

In 2004, French Guyana recorded a single major oil products price index increase +4.6% in November despite June and July +1.2% and +2.3% gains. In 2005 the index recorded stronger increases with October and November prices jumping respectively +7.6% and 9.8% but were offset by -13.9% in December. In 2006 and up to September, the index remained below +3% increases much like Reunion‘s.

In 2004, Reunion’s oil products price index solely rose above +2% in August when it grew +4.9% and increased +6.3% that same month the following year against July. In November 2005, the index jumped +7.1% against the previous month but increases stayed modest in 2006 up to September : the third quarter averaged +0.6% increase.