Luxembourg inflation drops to 2.9%

The annual inflation rate in Luxembourg has seen a abrupt slowdown from 3.5% in June to 2.9% in July, according to data released on Wednesday by Luxembourg's statistics office, STATEC.

Consumer price indexation fell 0.92 compared to June as a result of summer sales.

However outside sales, prices rose by 0.21%. STATEC state that this is due to; “food prices and package tours by air and for cruises”. The statistics office also notes that the prices of petroleum has fallen for the third consecutive month.

The annual rate of core inflation (excluding oil prices and other commodities whose prices stem from international markets) dropped below the barrier of 2% to1.8% in July compared to 2.4% in June

What everyone is waiting for though, is the next wage and pension indexation release which is expected to be in the second quarter of 2012, so say STATEC.