Fuel prices drive inflation up to 4.5% in November

Surging fuel prices caused inflation to reach 4.5% in Luxembourg in November   – up from 3.6% compared with the same month last year, the country’s statistics agency said on Wednesday.

Prices of heating oil - used in boilers and water heaters - doubled in the past year while fuel costs were up 6.4% compared with October this year, Statec said.

Petrol prices rose 5.2% between October and November, diesel 2.5% and heating oil 3%. Fuel was twice as expensive per litre compared with same period last year, Statec found.

Food items went up 0.4% compared with October and the biggest hike was in flour, up 3.5%, followed by fish at 2.2% and bread with a 2% increase. Seafood, potatoes and dried meat prices were down.

Flight ticket prices went up 3.8% compared with October while the cost of package holidays dropped 5.6%, Statec said.

Inflation in the eurozone rose to 4.9% in November, a record high since the single currency was created more than two decades ago, also driven by soaring energy prices.

In July, amid rising prices across the eurozone, the European Central Bank adapted its inflation target to 2%, an upward shift from its previous model of "below but close to 2%".

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