Annual Inflation Up from 2.7% to 3.6%

According to Luxembourg's statistical institute, STATEC, the annual rate of inflation in the Grand Duchy has risen from 2.7% to 3.6% over one month.

In October 2021, the national consumer price index, calculated by STATEC, recorded an increase of 0.9% compared to the previous month. This development is mainly explained by rising fuel costs, which increased by 10.5% over one month. Prices excluding petroleum products rose by 0.4%.

Petroleum products

Petroleum product prices rose by 10.5% compared to the previous month, a development attributed to rising energy prices worldwide. The cost of heating oil rose by 12.4% over one month, whilst that of town gas (coal gas) increased by 17.7%. At the pump, motorists paid 9.6% more for a litre of diesel and 5.1% more for a litre of petrol compared to the month before.

Other products and services

Inflation excluding petroleum products was mainly affected by increasing service prices (up 0.5% over one month), particularly in relation to the wage indexation which came into effect on 1 October 2021. Retirement and care home prices rose by 2.2% over one month. Hair salons, housekeeping and vehicle maintenance and repair services also witnessed price increases. Prices rose by 0.8% in restaurants and by 2.2% for housing insurance. Medical and dental care costs rose in relation to the wage indexation.

Moreover, food prices increased by 0.1% over one month. The most significant increases were recorded for baby food (up 4.6%) and meat (up 0.6%), whilst price drops were recorded for frozen fish and seafood (down 2.5% and 2.0% respectively), fresh fruit (down 1.4%) and olive oil (down 1.4%). Over one year, food prices were 1.3% higher.

Travel costs dropped the most compared to the previous month. Package holiday prices fell by 3.9% and those of flights decreased by 21.8% compared to September 2021. Compared to October 2020, however, flights were 20.2% more expensive last month.

The annual inflation rate stood at 3.6% in October 2021, up from 2.7% the month before. The general index for the month of October expressed in base 100 in 2015 was 110.45 points.