In April 2024, annual inflation in Luxembourg reached its lowest level in almost three years, at 2.4%, the National Institute of Economic Studies Statistics (Statec) indicated this Wednesday.
“The slowdown in inflation stems in particular from that of the prices of food products after the peak last March,” explains Statec. 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.” On the other hand, the prices of petroleum products have increased “unexpectedly” in recent months (+3.5% year-on-year in April). The next index tranche is still planned for the last quarter of 2024.
In addition, Statec warns that inflation could rebound to 3.1% at the turn of 2025, after the supposed lifting of tariff shields on energy prices, scheduled for January 1. The institute therefore forecasts an increase in gas and electricity prices of 17% and 60% respectively for next year. Indexation would still be planned for the 3rd quarter of 2025.
