hits lowest level in almost 3 years

hits lowest level in almost 3 years
Inflation hits lowest level in almost 3 years

Annual in Luxembourg has reached its lowest level in almost 3 years, reports Statec in a report published this , May 8. However, the institute still plans a new indexation in the last quarter of 2024.

Good news at last ? In April 2024, annual inflation in Luxembourg reached its lowest level in almost 3 years, at 2.4%, Statec indicated in a report published this Wednesday.

“The slowdown in inflation stems in particular from that of the prices of food products after the peak last March. In April, food inflation (+2.4% over one year) contributed only little to overall inflation (+0.3 percentage points, compared to +1.6 points a year earlier). Prices of services slowed down sharply in April (from +4.7% year-on-year in March to +3.4%). This reflects the end of the impact of the indexations in February and April 2023,” explains the statistics institute.

Be careful, however: geopolitical uncertainties in the Middle East have driven up oil prices in recent months. Petroleum products have thus contributed positively to inflation since January. Statec is therefore planning an index tranche in the last quarter of 2024, as planned, but also another index for the 3rd quarter of 2025!

At issue: the supposed end of price shields at the turn of 2025, which would lead to an increase in gas and electricity prices (by 17% and 60% respectively according to Statec calculations) pushing inflation at 3.1%. In the absence of new measures, inflation would rebound and remain above 3% throughout next year.

-

-

PREV “We must take the measure that we have in our hands the privacy of a life”
NEXT “I grabbed her leg and pulled”: how Fabrilene saved her colleague from a burning car