Filling up with petrol, buying heating oil or booking a flight was cheaper in Luxembourg in June. Conversely, going to the hairdresser’s, having lunch at a restaurant or using certain healthcare services became more expensive. Behind inflation that remained virtually stable at 2.2%, Statec has observed a shift in price rises from energy to services.
Published on Wednesday 8 July, the latest figures from the Office for National Statistics show that the annual inflation rate fell from 2.3% in May to 2.2% in June. This slight slowdown is largely due to the fall in energy prices, although these remain 16% higher than they were a year ago. Over the course of a month, the price of heating oil fell by 11%, and fuel prices by 6.7%, with diesel down 7.6% and petrol down 6%. Airfares (-9.7%) and telecoms bundle deals (-8.2%) also helped to ease the burden on household budgets.
+11.1% for tomatoes
Conversely, several everyday expenses have risen as a result of the index-linked adjustment that came into force on 1 June. Fees for retirement and care homes rose by 5.1% month-on-month. Maintenance and repair of dwellings, domestic services, home care, medical and dental consultations, hairdressing salons (+1.7%) and restaurants (+0.6%) were also among the most significant increases.
In the food aisles, prices remain broadly under control, with an annual increase of 1.4%. However, certain products stand out, such as tomatoes, courgettes and other summer vegetables (+11.1%), chocolate (+7.2%) and fresh meat (+5%). Conversely, prices for alcoholic drinks have fallen slightly, thanks to special offers on beer and wine.
Finally, Statec points out that price pressures remain very much in evidence outside the energy sector. Core inflation rose from 1.2% to 1.7% year-on-year between May and June. However, a new index adjustment is not imminent: the half-yearly average of the index stands at 1,044.80 points, still some way off the threshold of 1,064.75 points required to trigger a new indexation.
