Luxembourg inflation continues to fall, hitting 0.8% in November

Annual inflation in Luxembourg stood at 0.8% last month, the country’s official statistics agency Statec said Wednesday, propelled by a sharp drop in travel costs and gas prices.

Inflation slowed for the fourth consecutive month, from 2% in July to 1.7% in August, to 1.3% in September and 1% in October before falling further to 0.8% in November.

The trend has been driven by a slump in travel and energy costs, Statec said, with gas prices down over 7% from October and petrol falling by 1.2% over the course of the month. Compared with November 2023, the price of petrol products is 12.6% lower, according to the Statec data.

The EU’s official statistics agency, Eurostat, which uses a different methodology than Statec, estimated last week that Luxembourg’s annual inflation rate was 1.1% in November, the second-lowest in the entire eurozone.

The annual rate, which fell below the European Central Bank’s target of 2% in the summer, has declined sharply from peaks of over 10% in mid-2022 and 3.5% in August 2023, according to Eurostat data.

However, Statec predicts that inflation will rise once again and reach 2.5% at the beginning of 2025.