Luxembourg inflation down to 5.4% from 5.9%

Luxembourg's annual inflation rate fell by 0.5 percentage points to 5.4% in December due to a significant decrease in petrol and diesel prices, the national statistics agency said on Monday.

In December, drivers had to pay 11.5% less for a litre of diesel at the pump and and 12.3% less for a litre of petrol compared to November. The price of heating oil was also down by 18% compared to the month before, Statec said in a press release.

Inflation in the eurozone returned to single digits for the first time since August in December, fuelling hopes that the bloc’s worst-ever spike in consumer prices has peaked. The December figures came in at 9.2%, Eurostat said on Friday, with slower growth in energy costs the only reason for the moderation.

However, the prices of oil-based products were still 15.8% higher in Luxembourg than in December 2021, according to Statec. Energy prices soared due to Russia's war in Ukraine, with a relatively warm winter keeping price spikes in check.

Food prices, however, inched up by 0.5% in December compared to November, Statec said. The cost of food last month was 11% higher compared to December 2021.

Luxembourg has one of the lowest inflation rates in the eurozone.

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