Luxembourg’s rising consumer prices slowed last month

Inflation slowed in the Grand Duchy last month thanks to a break in rising prices for petroleum products, Luxembourg's statistics agency Statec said.

Consumer prices dropped from an annual rate of 7% growth in April to 6.8% in May, Statec said on Wednesday. After four consecutive months of increases, petroleum products fell by 3.9% between April and May, Statec said.

Last week, the EU's Luxembourg-based statistics agency estimated that consumer prices in the Grand Duchy rose slightly from 9% in April to 9.1% in May. Eurostat and Statec frequently reach differing estimates. 

Food prices in Luxembourg increased by 0.5% between April and May, Statec said. Fish and seafood, fats and oils all rose in cost while fresh vegetables and soft drinks became cheaper.

“In annual comparison, the checkout for food products has increased by 5.7% for consumers,” Statec said.

Consumers also faced higher costs at crèches and day centers for infants. 

On Tuesday, Statec revealed that Luxembourg’s economy could increase by 2% this year, down from the 3.5% predicted last year, mainly due to the impact of Russia’s war on Ukraine.

As a result, Statec anticipated that the construction sector would likely suffer from more material shortages, which were fuelled by the Covid pandemic and then even further since the war broke out.

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