The substantial price hikes in August, notably in fuel and heating oil, food, and the end of summer sales, have prompted this development.
Starting from September, both wages and pensions in Luxembourg will see a 2.5% increase. The latest wage indexation came into effect on 1 September, as officially reported by STATEC on Wednesday. The catalyst for this development was the Consumer Price Index’s significant rise of 1.5% in August, compared to July, according to STATEC’s findings.
Broadly speaking, this indicates that the annual inflation rate in Luxembourg now “stands at 4.2%, compared to 3.7% just a month ago.”
Two primary factors underpin this rapid inflation. Firstly, the cost of filling up at the pump surged in August, with diesel prices climbing by 10% and petrol prices by 6.2%. It should be noted that petroleum product prices have increased for the third month in a row.
For households preparing for the upcoming winter, the bill for heating oil soared by 19.1% in a single month. However, STATEC points out that despite this resurgence, petroleum product prices remain 1.3% lower than the same month last year.
Secondly, clothing and footwear prices registered a striking 13.9% increase within a month, primarily attributed to the prices of items on sale in July returning to their standard levels.
Excluding adjustments stemming from sales and petroleum products, the overall prices of other goods and services in Luxembourg witnessed a 0.3% increase over the course of one month.
During the summer season, package holiday costs surged by 8.8%, and flight prices experienced a staggering 12.4% increase in a single month.
Food prices were up 0.4% on July. Notable contributors to this rise were olive oil (+5.1%), frozen vegetables (+3.9%), and baby food (+3.5%).
Conversely, certain products recorded price decreases, including whole milk (-2.6%), butter (-1.7%), and mineral water (-0.7%). Over the entire year, food prices “have risen by 9.9%.”
