Annual inflation rate drops to -0.1% from 1.9%
Luxembourg's annual inflation rate dropped to -0.1% in February from 1.9% a month earlier, the statistics office said on Friday, largely on the back of winter sales which took place a month later than normal.
Without the effect of the sales, which were delayed by a month this year on the back of the Covid-19 crisis, the annual inflation rate would stand at 0.9%.
Compared to a month ago, prices dropped by 0.7%, but they rose by 0.1% when adjusted for the effect of the sales and excluding fuel prices.
The rise in the adjusted rate was on the back of higher prices for package holidays during the school break (+6.6%), and rife demand for flowers and plants on Valentine’s day (+7.9%), the Statec statistics bureau said.
Fuel prices rose by 4.5% month on month and by 0.4% year on year, Statec said, with food prices registering an uptick of 0.1% compared to last month and 1% compared to February 2020. The current inflation figures are not enough to trigger an indexation of wages, Statec said.