Annual inflation as of August 2019; Credit: Statec

The annual rate of inflation in Luxembourg has dropped from 1.8% to 1.6% over the past month, according to Statec; the monthly rate rose by 1.2%.

In August 2019, the national consumer price index, calculated by STATEC, increased by 1.2% compared to the previous month. Like every year, this increase was mainly due to the end of the summer sales. By offsetting balancing changes, the prices of goods and services (excluding petroleum products) increased by 0.3%.

Following a rise in July 2019, fuel prices began to fall again last month: petrol products fell by 0.5% over one month. This may be explained by a 1.5% fall in heating. In addition, motorists had to spend 0.5% less for a litre of petrol at the pump, whilst diesel prices fell by 0.4% per litre compared to July. For their part, the prices of black gold derivatives in the basket of the index were 2.6% lower in August 2019 in comparison to the previous year.

At the height of the summer season, the price of package holidays again rose last month, this time by 3% compared to July 2019. Similarly, the number of passenger flights increased by 14% over one month.

Regarding food, price increases for milk products, bread and cereals were offset by lower prices for fruit and vegetables. Nevertheless, food prices were 1.6% higher last month than in August 2018.

In sum, the annual rate of inflation fell from 1.8% to 1.6% over one month. In addition, the overall index for the month of August 2019, expressed in base 100 in 2015, amounted to 106.06 points. The semi-annual average of the index linked to the 1.1.1948 base rose from 870.38 to 871.82 points.