The Grand Duchy had its lowest rate of inflation in more than a year, according to figures released by the EU’s official statistics agency.

Consumer prices in Luxembourg rose at an annualised rate of 2.5% in December, down from the 2.7% rate seen in November and 3.4% in December 2011, Eurostat said on Saturday.

In Luxembourg, average inflation of more than 2.5% over a six month period triggers indexation, or automatic increases in salaries and state pension payments.

The Grand Duchy’s figures were near the euro zone and EU averages. Harmonised inflation in the euro zone was 2.2% in December, stable from the month prior and down from 2.7% in November 2011.

Across the wider EU27, consumer prices rose 2.3% last month, down slightly from 2.4% in November and a more noticeable decline from the 3% rate recorded in December 2011.

The highest inflation rates in the EU were found in Hungary (5.1%), Romania (4.6%) and Estonia (3.6%), while the lowest rates were recorded in Greece (0.3%), Sweden (1.1%) and France (1.5%).

Consumer prices in Luxembourg also rose faster in December than in neighbouring Belgium (2.1%) and Germany (2%).