STATEC, Luxembourg's national statistics office has published details of the latest consumer price survey in which the consumer price index rose significantly last month.
While the general index rose by 0.4% in one month, the annual inflation rate rose from 0.3% to 0.7%. The prices of oil products and certain services, as well as those of certain food products, explain why inflation still remains at a low level, below 1%.
Despite an increase of 3.1% compared to April, prices of oil products are lower by 8.1% compared to 12 months ago. Compared to April, motorists have to pay 3.0% more for a full tank of diesel and 1.6% more for a tank of petrol. Despite these recent increases, annual rates for all such products remain negative.
In May, some housing-related services have fueled inflation. This concerns water, with an increase of 5.9% compared to the previous month, housing maintenance services with an increase of 2.4%, and also rents for apartments which rose by 0.2%.
Also in relation to services, meals and drinks at restaurants (+ 0.7% and + 1.2% compared to the previous month) and alcohol served in cafés (+ 1.6%) boosted inflation upwards. The impact of these positions on global figures were however offset by lower prices for package holidays by air (-1.8%) and for the air transport (-3.2%).
Moreover, the index of food products increased by 0.5% compared to April, under the effect of price rises recorded in certain products such as fresh fruits, products derived from potato, pork, sausage meat and coffee.
The underlying annual rate of inflation picked up 1.2% in April to 1.4% in May while the annual inflation rate goes from 0.3% to 0.7%.
