Inflation in Luxembourg rose to 2%

The consumer price index, calculated by the national statistical institute STATEC, rose by 0.6% in May compared to April. Annual inflation was 2.0%, against 1.7% a month earlier, while the so-called "core" inflation reached 2.3%. The main factor was wage indexation, which automatically took effect on 1 May and triggered a chain reaction in the services sector.

Over the month, the cost of services rose by 1.3%, especially noticeable in elderly care facilities (+2.3%), kindergartens and day care centres (+11.8%), as well as home repairs (+2.0%) and car repairs (+1.1%). Household services (+2.6%), the restaurant sector (+0.8%) and home insurance (+0.8%) also rose in price.

Prices for medical and dental services have also risen - their tariffs are directly linked to wage indexation, making increases almost inevitable under the current model of the social system.

The overall increase in food prices was +0.1%. Pasta (+1.5%), chocolate (+2.3%) and coffee (+2.4%) became more expensive, while fresh vegetables fell in price by 4.1%, fruit by 1.4% and chicken by 1.2%. In annual terms, the cost of products increased by 1.5%.

The sharpest jump was noted for air tickets (+17.9%). Prices for jewellery and watches (+2.2%), tyres (+0.9%) and household cleaning appliances (+6.8%) also rose.

A pleasant exception is petroleum products, which fell in price by 1.7% over the month. Petrol and diesel fell in price by 1.4% and 2.2% respectively, heating oil - by 3.8%. The cost of natural gas remained unchanged. In annual terms, fuel prices fell by 4.1%.

The overall price index (base 2015 = 100) reached 125.66 points. The semi-annual average (recalibrated to 1948) is 1019.75 points. The next threshold at which wage indexation will be activated again is 1038.79 points.