Luxembourg: Consumer prices rise in March
April 15, 2021
Consumer prices increased 1.41% over the previous month in March, swinging from February's 0.69% fall. March's reading was the sharpest increase in prices since February 2019. The reading was primarily due to rising prices for food and non-alcoholic beverages. In addition, price pressures for transportation also grew at a stronger rate.
Consumer prices rose 2.0% year-on-year in March, contrasting February’s 0.1% drop in prices. Annual average inflation rose to 0.8% in March (February: 0.7%). Lastly, harmonized consumer prices rose 2.5% year-on-year in March after falling 0.5% in February.
Commenting on the inflation outlook, Katharina Koenz, economist at Oxford Economics, added:
“Inflation is expected to average only 1.2% a year in 2020-22. Energy prices will rise on the back of the recent rise in oil prices, while core inflation may pick up due to tight labour markets, increasing earnings and dynamic private consumption.“