Luxembourg inflation at five-year low

Luxembourg inflation reached its lowest point since July 2009, plummeting to -0.6 percent in December last year.

According to figures published by statistics body STATEC, this rock-bottom rate was heavily influenced by a plunge in oil prices.

The cost of so-called black gold fell 6.8 percent from November to December 2014, bringing good news to motorists as petrol prices tumbled.

Indeed, the cost of unleaded petrol fell by 7.5 percent and diesel 7 percent (dropping to below 1 euro per litre at one point) meanwhile, heating fuel prices fell by a whopping 13 percent. Gas remained stable.

When fuel prices are taken out of the equation, the cost of services and products rose by 0.1 percent in December.

This meagre growth was influenced by a 3.9 percent fall in the cost of package holidays, and drops in other prices for example fresh fruit, meat, ham, pork and yoghurts.

But, it was not all good news as consumers shelled out more money for certain other services and products, for example air travel (up 4.6 percent), restaurant meals (up 0.2 percent) and snacks (up 0.6 percent).

To read the report (in French), visit www.statistiques.public.lu

Do not miss the news - sign up to receive the wort.lu newsletter in English  delivered to your inbox six days a week.