Oil prices driving up inflation in Luxembourg

Luxembourg consumer prices in December rose compared to the month before. The general index recorded by STATEC went up by 0.24%. This development can mainly be explained by “rising oil prices”, according to Luxembourg’s statistics office. The yearly inflation rate went up as well and is currently set at 1.1%.

The consumer price index in December triggered an indexation, causing salaries and pensions in the private and public sector to go up by 2.5% from January 1, 2017. Oil prices in December went up by 4% (+4.6% for Diesel, +2.9% for petrol). Oil prices went up a total of five percent over the whole of last year.

For the first time since January 2013, oil prices are therefore higher than they were 12 months ago. According to STATEC, prices of the remaining products and services remained relatively stable between November and December (+0.06%). Vegetables are an exception to this, seeing a price hike of 5%.