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Luxembourg inflation rate edged up in September
Inflation

Luxembourg inflation rate edged up in September

by John MONAGHAN 05.10.2022
Annual inflation was 6.9% last month, largely driven by a spike in fuel prices, in the first month after the end of a government subsidy
A spike in fuel prices caused inflation to rise in September
A spike in fuel prices caused inflation to rise in September
Photo credit: Sven Hoppe/dpa

Luxembourg’s annual inflation rate rose to 6.9% in September, the country’s official statistics agency said on Wednesday, largely down to an increase in fuel prices.

Prices at the pump went up by 2.3% compared to August, Statec said, in the first month after the end of a fuel subsidy from the government. Under the scheme, which expired on 31 August, motorists were entitled to a 7.5 cents discount per litre of petrol and diesel.

Households which “filled their oil tank” saw an increase of 7.1% on their bill in September, Statec said.

The rise in fuel costs pushed the overall inflation up slightly, from 6.8% in August.

Food products saw a 0.7% increase month-on-month, with some items seeing huge spikes, such as vegetables which jumped by 12.3%, and eggs, which were 4.5% costlier than in August.

There were drops in other spending areas, with package holidays 9.4% cheaper in September than the previous month and plane tickets down by almost a third, which Statec attributed to the end of the summer holiday season.

Inflation in the eurozone hit double digits last week for the first time ever, according to data from the EU's official statistics agency Eurostat, amid a cost-of-living crisis sparked by the fallout from Russia's invasion of Ukraine.

Luxembourg's inflation rate next year is forecast to hit 2.8%, Statec said in a previous statement. Statec slashed its outlook - which it had previously set at 6.6% - following the government's announcement of support measures to assist households in the coming months.


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