Inflation falls slightly in June

(JB) The shopping basket got cheaper from May to June this year as inflation dropped slightly in the Grand Duchy.

Inflation fell from 3.6% to 3.5% in June, a drop which was largely caused by the declining cost of fuel and fresh vegetables.

According to data gathering body STATEC, the consumer price index dropped by 0.09% from the preceding month.

Compared with the month before, the cost of filling up the car got cheaper as fuel costs fell by 0.71% and the cost of other consumer goods fell on average by 0.02%.

A marked fall in prices was seen in the fresh vegetable aisles of supermarkets and greengrocers, where the price of fresh vegetables and salad plummeted dramatically by 14.7%.

June's outbreak of the fatal e Coli bacteria, which was thought to be connected to fresh produce, was blamed for this trend.

Other marked drops were seen in the cost of gardening materials and plants, which fell 2.47% and gas, which dropped 2.06%.

Inflation rates excluding fuel costs grew 0.1% to 2.4% from May to June.

According to STATEC's estimates the inflation rate should result in a salary, pension and family benefits rise at the beginning of 2012.

The next indexation is due in October this year at an increase of 2.5%.