Economy: Monthly gains in consumer prices are at the lowest level seen for more than a year and well below the indexation threshold, according to new figures.
The Grand Duchy had the 10th highest annual inflation rate last month among EU countries and 7th highest in the euro zone, new figures have shown.
Consumer prices in Luxembourg were 1% higher in October 2013 than in October 2012, the EU’s statistics bureau said on Friday. That marks the lowest monthly inflation rate in the past 12 months: the rate was 3.2% a year ago.
October’s 12-month average rate was roughly a third lower than at the end of last year, Eurostat reported. Consumer prices were 1.9% higher at the end of last month compared to the October 2011 to October 2012 period. The 12-month rate was 2.9% in December 2012.
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.
Eurostat said prices declined slightly last month in three categories: “transports” (-1.9% lower in October 2013 than in October 2012), “housing, water, electricity gas and other fuels” (-0.8%), and “communications” (-0.7%).
The highest rates of inflation were recorded in the “alcoholic beverage and tobacco” (4.1%), “education” (3%) and “food and non-alcoholic beverages” (2.9%) categories.
Overall consumer prices were 1.2% higher in Germany, and gained 0.7% in both Belgium and France.
Last month the highest inflation rate in the EU was seen in the UK (2.2%), while Estonia (also 2.2%) had the highest rate in the euro area. The EU average was 0.9% and the euro zone average was 0.7%. Greece experienced the largest price decreases in both the EU and euro zone (-1.9%).