Compared to September 2021 the price of petroleum products has risen by 37.4%. After two months of consecutive decreases, people are now paying on average 6% more for a litre of diesel compared to August 2022. This explains the slight increase in the annual inflation rate, according to Statec, which went from 6.8% in August to 6.9% in September.
Food prices have also contributed to the rise in inflation with an overall increase of 0.7%. Fresh vegetables (+12.3%), eggs (+4.5%) and butter (+2%) had the biggest impact on the uptick. On the other hand, the prices of fresh fruit (-2.3%), chocolate (-1.8%) and breakfast cereals (-1.7%) provided some development in the opposite direction.
Postal services became 22% more expensive last September compared to the previous month. Air fares dropped by 30.5% on the other hand, and package holidays’ prices went down by 9.4%.
The half-yearly average of the index rose from 954.51 to 956.56 points and the next indexation will be triggered when the 964.64 threshold is crossed, says Statec. The annual inflation rate crossed the determined level in July when it would’ve normally triggered an indexation which was postponed following an agreement in March by the government, trade unions and employees representatives.
But that deal is now off the table following the latest tripartite agreement signed at the end of September. The “historic agreement” will cost the state over €1billion and includes a cap on the price of gas at 15% above the current rate as well as a freeze on electricity prices. It is expected that the measures announced in the tripartite deal will help slow down the inflation rate. Reports suggest that the draft text should be transposed into law relatively quickly.