Product inflation in Luxembourg is not as high as in Hungary, for example. Nevertheless, it has a significant impact on the country's overall price indicators. In July, food prices in the Grand Duchy fell for the first time in two years.
Let's be honest, the decrease was only 0.1%, which is incomparably small compared to the average annual increase of 10.4%. Nevertheless, this may become a new trend and eventually, if not outweigh inflation in other sectors, at least slow down overall inflation.
First, however, we need to find out which products have affected overall costs. And the answer is very predictable — fruit, vegetables and olive oil. These are the categories for which it is high season.
The price of fresh vegetables fell by 3.8%. For fruit — by 2.4%, and oil costs 2.3% less than in July. There is another product that is breaking records so far — fresh fish. In July, its price was 4.7% lower than in June.
At the same time, the prices of meat (+0.65%), the category "Milk, cheese and eggs" (+0.26%), confectionery (+1.8%) and potatoes (+4.2%) are rising.
Although the fall in prices pleased analysts, it should be noted that once the harvest season is over, the costs of these categories could return to spring levels or even rise.