Annual Inflation Drops to 2.2% in June

On Monday 8 July 2024, Luxembourg's national statistical institute, STATEC, reported that the annual inflation rate had dropped to 2.2% in June 2024.

In June, the national consumer price index, calculated by STATEC, fell by 0.1% compared to the previous month - an decrease attributed to a drop in both petroleum product and food prices.

For the second consecutive month, petroleum product prices continued to fall. Compared to the month of May, products derived from black gold fell by 1.8%. In June, prices at the pump fell by 3.2% for petrol and by 1.4% for diesel compared to the previous month. The price of heating oil fell by 2.1%. Compared to June last year, the prices of petroleum products remained 0.5% higher.

Food prices decreased by 0.4% compared to May. Consumers thus had to pay less in June for fresh fruit (-2.6%), baby food (-3.9%) and cheese (-0.7%). However, prices rose for other supermarket items, particularly olive oil (+4.1%), crisps (+3.2%) and fresh seafood (+3.2%). Food prices were 1.6% higher than in June 2023.

After the rebound in May, the services aggregate only showed a modest increase of 0.1% in June 2024. The prices of body aesthetic services increased by 2.1% over one month, whilst the prices of hotels and hostels increased by 4.1%. In addition, consumers paid more for package holidays (+10.9%) in June than in May. This development was offset by price drops for crèches and "maisons relais" (childcare services) (-1.3%) and air transport (-12.8%). Over one year, service prices increased by 3.8%, compared to 4.0% the previous month.

Other price increases having strongly contributed to the inflation rate in June were noted for plants and flowers (+3.5%) and indoor furniture (+1.1%).

The annual inflation rate thus stood at 2.2% in June 2024, compared to 2.6% a month earlier. The annual underlying inflation rate lost 0.2 percentage points and stood at 2.3% in June.

The general index for the month of June expressed in base 100 in 2015 amounted to 123.12 points. The half-yearly average of the index connected to the 1.1.1948 base went from 1004.46 to 1006.97 points. STATEC recalled that the next indexation will be triggered when the value of 1013.46 is reached.