Luxembourg Inflation Rate Up from 6.1% to 7.0%

According to Luxembourg's statistical institute, STATEC, the annual rate of inflation in the Grand Duchy stood at 7.0% in April 2022, up from 6.1% the previous month.

In April 2022, the national consumer price index, calculated by STATEC, posted a monthly increase of 0.8%, partly explained by rise in the prices of certain services, indexation of wages in April and continued increase in the price of petroleum products.

Compared to the previous month, diesel prices rose by 1.2% while petrol prices remain largely similar. The price of heating oil rose by 5.5%.

Inflation excluding petroleum products is largely due to the surge in service prices, which rose 1.0% in one month, notably under the effect of wage indexation from 1 April 2022. Prices for retirement and care homes increased by 2.0% from 1 April while catering sector were up 1.2% and home insurance in creased by 2.4%. The costs associated with medical and dental services, linked to the indexation of salaries, also increased proportionately.

Seasonal price movements contributed to the general upward trend. Due to Easter holiday, the prices of plane tickets soared by 31.4% compared to March, while travel abroad at fixed price were up 10.8%.

Food prices continued to increase, up 1.3% over one month. This trend was most noticeable for meat (up 2.4%), fresh vegetables (up 3.7%), dairy products and cheese (up 1.2%) and fats and oils (up 1.4%). However, other supermarket items have seen their prices fall, particularly rice (down 1.1%), fresh seafood (down 1.6%) and coffee (down 1.3%). In annual comparison, food prices have increased by 5.6% for consumers

The inflation is boosted by an increase in prices for interior furniture, which rose by 1.5% in April, up 9.0% in annual comparison, while phone services were up 2.5%. On the other hand, footwear fell sharply by 4.2% in April

In April 2022, the annual inflation rate stood at 7.0% (compared to 6.1% a month earlier) and the annual underlying inflation rate reached 4.2%. The general index for the month of April, expressed in base 100 in 2015, amounted to 115.72 points. The half-yearly average of the index connected to the 1.1.1948 base rose from 923.26 to 930.37 points.