The consumer price index fell slightly in Luxembourg in July, largely driven down by the summer sales but also by falling fuel costs.

The cost of clothing and shoes fell by -0.3 percent compared with the previous month, as did the price tag on furniture (-4.5 percent) and other personal effects (-2.8 percent), it was reported on STATEC.

These prices are expected to rise again in August when the sale period tails off. The cost of petroleum based fuels fell by 1.9 percent from June to July. Heating oil was down 3.8 percent, petrol by 3.1 percent and diesel by 1.4 percent.

Not all prices fell in Luxembourg and the largest increase was recorded in package holidays (3.8 percent). Rises were also reported in household waste collection services (+1.9 percent), restaurants (+0.3 percent) and cafés (+0.6 percent). Prices also rose for certain models of new cars. The report did not specify which.

The underlying inflation rate was recorded at +0.8 percent while the annual inflation rate was at -0.03 percent.

In a separate report, STATEC recorded tthat he inflation forecast for 2016 remains unchanged at 0.2 percent. STATEC said that depending on the evolution of the cost of BRENT in the coming months, the next automatic wage rise (indexation) could be applied between the fourth quarter of 2016 or the second of 2017.