Annual Inflation Rises from 0.6% to 1.9%

The annual rate of inflation in Luxembourg has risen from 0.6% to 1.9%, according to STATEC.

In January 2021, the national consumer price index, calculated by STATEC, went up 0.7% compared to the previous month. This increase is explained by an increase in the price of energy products over one month.

Petrol product prices rose 11% between December 2020 and January 2021. This was partly due to the introduction of the new CO2 tax last month, as well as an increase in the Brent price on international markets. Heating oil bills were 19.6% more expensive compared to the previous month, whilst the price of town gas was up 10.3%. At the pump, motorists had to pay 8.3% more for a litre of diesel and 7.5% more for a litre of petrol compared to December 2020.

Food prices rose 0.5% over one month (and 1.3% compared to January 2020). On the one hand, the price of fish and sea food (up 4.5%) as well as fresh vegetables (up 7.4%) increased. On the other hand, prices dropped for dried meat (down 2.7%), whole milk (down 3.5%) and potatoes (down 1.4%).

The price of the following services also increased over one month: financial services (up 1.8%), hairdressers and beauty salons (up 1.6%) and car maintenance and repair services (up 1.5%).

In addition, seasonal patterns impacted the following sectors at the start of the year: airline tickets fell 16.9% over one month, whilst package holiday prices dropped 8.2%. The price of train tickets also fell during this period.

The annual inflation rate thus rose from 0.6% in December 2020 to 1.9% in January 2021 - a rebound attributed to the winter sales period being held later than usual this year. The general index for the month of January expressed in base 100 in 2015 amounted to 107.38 points.