Luxembourg inflation reaches new 2015 high

Inflation in Luxembourg reached its highest level of the year in June at 1.5 percent, a rise which was largely driven by increasing petrol prices.

By the middle of 2015, the rate had risen to 1.5 percent up from under 1 percent at the end of 2014.

Petrol prices, which rose 1.9 percent, were not the only growth factor.

There were seasonal fluctuations in the costs of package holidays and flights, which rose 2.5 percent and 7.4 percent respectively, compared with May.

While these fluctuations were not unexpected, increasing costs in other areas could not be explained by the seasons.

Hairdressing rates rose 0.5 percent, while flat rents and retirement home prices both climbed 0.4 percent.

The overall impact could have been a lot worse had it not been for falling prices in beauty and hygiene products, telephone equipment, books and home improvement products.

Inflation growth was not, however, enough to push the consumer price index above the threshold for increasing salaries in Luxembourg, a mechanism known as indexation.

The index for June was at 826.58 points, not far from the indexation threshold of 831.84. 

Click here to view the full inflation report (in French)

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