POLITICS & INSTITUTIONS - ECONOMY

Consumer prices

Inflation slows down in November



Over one year, the price of food products is up by almost 11% in Luxembourg. (Photo: EU)

Over one year, the price of food products is up by almost 11% in Luxembourg. (Photo: EU)

Luxembourg’s annual inflation rate fell from 6.9% to 5.9% in November 2022. It had not fallen below 6% since last January. 

In November, prices in Luxembourg rose by 5.9% over one year, compared with 6.9% one month earlier, announced the grand duchy’s statistics bureau Statec on 7 December. This drop in the annual inflation rate is mainly due to the decrease in fuel prices. Between October and November, the price of a litre of heating oil fell by 15.5%, helped by an increased subsidy for fuel, while that of diesel slowed by 1.7%.

Over a one-year-period, however, petroleum products remain 20.9% more expensive, Statec points out.

Among other downward elements, the institute points to the price of package holidays, which fell by 26.7% on a monthly basis. In addition to this seasonal variation, the impact of free non-formal education in force since October is being felt with a monthly fall of 12.4% in the canteen index. School lunches from September on became free for most children in the country. 

Cheaper fresh vegetables and fish

Food prices in residents’ shopping carts rose by a modest 0.2% on a monthly basis. Prices fell sharply for fresh vegetables (-7.8%) and fresh fish (-2.8%), while they rose by 3% for flour and 2.4% for cheese. Year-on-year food products became 10.7% more expensive in Luxembourg.

With an annual inflation rate of 5.9%, Luxembourg has returned to a level not seen since the beginning of this year, when the indicator stood at 3.6% in January, before jumping to 6.6% one month later. In monthly variation, the consumer price index contracted by 0.2%.

In its forecast for 2023, Statec expects three wage indexations.

This story was first published in French on Paperjam. It has been translated and edited for Delano.