Inflation Rate Falls to 1.1%, Expected to Rise to 1.4%

The inflation rate in Luxembourg has dropped to +1.1%.

In January 2018, the national consumer price index fell by 0.9% compared to the previous month, bringing the rate of inflation down to +1.1%.

As is the case every year, the decline in the national consumer price index can be explained by price reductions offered during the winter sales.

At the same time, the price of petroleum products continues to rise monthly. By offsetting changes in balances and excluding petroleum products, prices for other goods and services increased 0.2%.

Nevertheless, Statec has predicted an inflation rate of 1.4% in 2018 and 1.8% in 2019, arguing that inflation will slow down compared to 2017 (1.7%). This is linked to the economic upturn that also contributed to the recent rise in fuel prices. Another prediction is that the next salary adjustments will be made in the third quarter of 2018.