The Statec agency monitored the prices of food and non-alcoholic beverages. It found that they showed one of the highest price spikes in May this year. The trend continues from the end of last year.
Over the course of the year, food costs rose by 12%. Vegetables (+19.7%), milk and dairy products (+17%) and bread and cereals (+14%) have seen the biggest increases.
There was also a noticeable increase in the services sector. The recent indexation of wages is largely responsible for this. The price of domestic services rose by 2.6% following a 2.5% increase in wages.
It is important to remember that inflation has not gone away either. However, it is now being held down by the fall in the price of oil. Over the year as a whole, the price of oil has fallen by almost 14 per cent.
Earlier in April, Statec announced that the cost of living in Luxembourg is still on the rise, but the annual inflation rate is clearly tending to slow down since it reached 3.6% in March.
In terms of annual variation, Statec reported in April that the price of housing and utilities (water, electricity and fuel) fell by 0.10%, that of transport rose by 0.21% and that of expenditure related to education by 0.6%. On the other hand, the price of alcoholic beverages and tobacco rose (5.29%). In detail, vegetables (+21.25%) recorded the highest increase in prices, followed by dairy products and eggs (+18.39%) and bread and cereals (+13.33%).