Summer sales cause drop in inflation in Luxembourg
However fuel prices increased for the third month in a row, according to the latest figures from Statec
Sales have been cited as the main reason for the fall in inflation in July this year © Photo credit: Anouk Antony
Prices across Luxembourg fell by 0.4% in July compared to the previous month because of discounts offered by summer sales in shops, the country’s official statistics bureau Statec said on Wednesday.
The price of clothes and shoes fell by 11.8%, jewellery by 5% and furniture by 1.4%, Statec said, although these items should return to normal levels this month, when the sales are due to end.
However, fuel prices increased for the third month in a row, according to Statec, with diesel prices rising by 2.5%, petrol by 3.6%, heating oil soaring 4.5% and gas jumping 3.2%.
A 1.6% spike in fuel prices - which have been on the rise almost every month for the past year - from May to June this year, was the main cause of a small increase in prices of 0.2% in in June.
Inflation across the Grand Duchy could temporarily rise to nearly 3% by the end of 2021, Statec said in a separate press release on Wednesday, mainly driven by a rise in petrol prices. The overall inflation rate for 2021 is set to be 2.2%, but is expected to slow down next year. In 2022, inflation is expected to come in at just 1.7%, with petrol prices forecast to stabilise.
