According to Luxembourg's statistical institute, STATEC, the annual rate of inflation in the Grand Duchy stood at 6.1% in March 2022, down from 6.6% the previous month.
In March 2022, the national consumer price index, calculated by STATEC, posted a monthly increase of 1.0%, which is largely explained by the marked increase in the price of petroleum products (up 8.2% over one month). This development triggered a new wage indexation resulting in a 2.5% increase in wages, salaries and pensions as of 1 April 2022.
Compared to the previous month, diesel prices rose by 15.4% and petrol prices increased by 9.2%. The price of heating oil rose by 22.1% while that of town gas fell by 0.7%.
The prices of goods and services excluding petroleum products increased by 0.5% compared to February 2022. An upward trend was observed for certain durable goods, in particular cars (up 1.0%) and interior furniture (up 2.6%), but also for some services. Financial services (up 1.6%), hotels and hostels (up 5.9%) and heating engineer services (uo 3.6%) thus fuelled inflation. Moreover, restaurant and cafe bills increased by 0.5% over one month.
Seasonal price movements contributed to the general downward trend. The price of cut flowers fell by 9.7%, following the increases noted in February on the occasion of Valentine's Day. Package holiday prices fell by 1.9%.
Food prices continued to increase, up 1.2% over one month. This trend was most noticeable for meat (up 2.1%), pasta and couscous (up 4.5%), cheese (up 1.3%) and fresh fish (up 3.6%). However, other supermarket items have seen their prices fall, particularly fresh vegetables (down 3.0%) and wines (down 1.1%). In annual comparison, food prices have increased by 4.0% for consumers.
In March 2022, the annual inflation rate stood at 6.1% (compared to 6.6% a month earlier) and the annual underlying inflation rate reached 3.5%. The general index for the month of March, expressed in base 100 in 2015, amounted to 114.78 points. The half-yearly average of the index connected to the 1.1.1948 base rose from 916.09 to 923.26 points and thus exceeded the threshold for triggering a new wage indexation.
