Credit: STATEC

Luxembourg's national statistical institute, STATEC, has reported that the annual inflation rate had dropped from 1.7% to 1.3% over one month.

In September 2024, the national consumer price index, calculated by STATEC, fell by 0.4% compared to the previous month. STATEC attributed this decrease to the sharp decline in petroleum product prices, linked to a drop in travel costs.

For the second consecutive month, petroleum product prices followed a downward trend. Compared to August 2024, products derived from black gold fell by 4.3%. Filling up at the pump was also cheaper for motorists: diesel prices fell by 4.4% and petrol prices by 5.4% compared to August 2024. The price of heating oil fell by 8.5%. Compared to September 2023, petroleum product prices were 14.9% lower.

The overall result was also influenced by a seasonal variation related to package holidays. Travellers paid 10.1% less for their stays than one month earlier. Airline ticket prices decreased by an average of 20% compared to August 2024.

On the other hand, the evolution of services was impacted by the increase in prices of daycare centres and "maisons relais" by 13.3% compared to the previous month, and by increased prices for hotels, motels and inns (+2.6%). Price increases were also noted in the catering sector (+0.3%) and for internet access (+6.3%). The aggregate of services increased by 3.7% over one year, compared to 3.9% the previous month.

Food prices increased by 0.2% compared to August 2024, which can be attributed to higher prices for fresh fruit (+4.4%) and fresh vegetables (+2.3%). The biggest declines were observed for chocolate (-3.5%), potatoes (-2.5%) and fresh fish (-2.9%). Over one year, food prices were 1.5% higher.

The annual inflation rate thus stood at 1.3% in September 2024, down from 1.7% one month earlier. The annual core inflation rate stagnated at 2.3% in September. The general index expressed in base 100 in 2015 amounted to 123.30 points. The half-yearly average of the index linked to the base 1.1.1948 increased from 1011.17 to 1012.12 points.

STATEC recalled that the next indexation will be triggered when the value of 1013.46 is reached. However, this is "unlikely" to happen "as early as next month".