Economy & Politics

Flat calm for inflation in October

Finally some good news: prices have (almost) not increased between September and October in Luxembourg. The annual rate of inflation therefore remains at 0.7% according to Statec.

Patrick JACQUEMOT

Finally some good news: prices have (almost) not increased between September and October in Luxembourg. The annual rate of inflation therefore remains at 0.7% according to Statec.

“Not very dynamic”: this is how Statec analyzes the consumer price index for the month of October 2020. It is true that with inflation raised to -0.03%, analysts do not have enough to signify a marked trend in the cost of living. After a month of September which had already seen daily bills decrease by around 0.1%, this is therefore a rather peaceful fall in terms of the cost of living.

By closely analyzing the various indicators, Statec even noticed that the past month had been marked by some spectacular price cuts. Starting with the cost of travel offers. The sector, in turmoil (as evidenced by today’s tripartite on the air sector), sells off its offers. So, package travel prices decrease by 5.7% when those of plane tickets “collapsed by 21.5% compared to September ”, notes the institute in charge of national statistics.

After two months of declines, the trend for petroleum products has reversed. And discreetly, oil prices recovered 0.2% compared to September. In question, a seasonal phenomenon. In fact, with the approach of cold days, the price of heating oil has increased by 2% from one month to the next. At the same time, however, motorists at the pump have to fork out a little = -0.4% for a liter of diesel and -0.1% for a liter of gasoline. It should also be noted that, over a year, the prices of black gold products fell 16.9%.

In the “housewife’s basket”, one of the other notable decreases concerns food costs (-0.3%). This is not much, but some products have seen their prices really drop, such as fresh fish (-4.8%), potatoes (-4.4%) and even fresh fruit (-1.3%). Unlike vegetables, which experienced a small increase (+ 0.7%) when breads and cereals increased by 0.2%. The fact remains that over a year, eating is 3.2% more expensive than in October 2019. Including nearly 1.1% increase recorded since last February (the month before the first containment measures).


08.10.2020, Baden-Württemberg, Esslingen am Neckar: Eine Frau steht mit Mund- und Nasenschutz auf einem Markt im Stadtteil Oberesslingen hinter einem Schild, das auf den Mundschutz hinweist. Der Landkreis Esslingen als überschreitet als erste Region in Baden-Württemberg die kritische 50er-Corona-Marke. Photo: Sebastian Gollnow / dpa +++ dpa-Bildfunk +++

Whether in Luxembourg or the rest of the world, the health pandemic had an impact on inflation in the first half of the year. In Luxembourg, it amounts to 1%, notes the Observatory of price formation in its latest report.


Even if, according to the latest study by the Banque centrale du Luxembourg, households retain faith in their economic future, it is nevertheless necessary to monitor families’ wallets. Because October will have seen prices rise significantly. Like articles of jewelry and watchmaking, the rating of which gains 11.8% in one month, without explanation. Other increases noted by Statec: that of nurseries and day-care centers for children (+ 1%) and that of newspapers (+ 2.9%).


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