In the ongoing saga of price fluctuations in Luxembourg, some prices are falling while others, in particular those for certain basic foods, continue to rise. The latest insights, as reported by the National Institute of Statistics and Economic Studies (STATEC) for September, offer a snapshot of the country’s inflation landscape.
The annual inflation rate currently stands at 4.1%, a modest dip from the previous month’s 4.2%. At this pace, the next wage indexation adjustment could potentially be triggered in approximately six months.
In September, STATEC’s consumer price index exhibited a marginal uptick of 0.1%.
Fuel prices have been on a relentless climb in Luxembourg, marking the fourth consecutive month of increase. In September, diesel prices surged by 4.9% while petrol prices inched up by 1.8% compared to the preceding month.
Households filling their fuel tanks faced a 7.3% bill hike in contrast to August. Nevertheless, petroleum product prices remained 0.6% lower compared to September 2022.
In contrast, the cost of food experienced a minor dip of 0.3% compared to August. Notable decreases were observed in fresh fish (-5.1%), baby food (-3.1%), and breakfast cereals (-2.3%). Conversely, whole milk (+2.3%), sugar (+2.2%), and butter (+1.1%) recorded price hikes. Food prices as a whole stand 8.8% higher than in September 2022.
The services sector showed overall stability compared to August, although this encompasses varying scenarios. On one hand, travel expenses saw significant reductions as package holiday prices plummeted by 10.4%, and airfare costs dropped by 28.6% due to the end of the school holiday period.
Conversely, the impact of salary indexation on 1 September was felt on other segments. Prices for retirement and nursing homes rose by 2.2% within a month. Upward adjustments were also noted in home maintenance services (+1.4%), vehicles (+0.9%), and hairdressing salon charges (+0.8%).
Price increases were also documented in the catering sector (+0.8%) and for financial services (+1.7%). In addition, medical and dental services experienced mechanical price adjustments linked to the latest wage indexation.
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