Luxembourg Inflation March 2021

Luxembourg

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.“

FocusEconomics Consensus Forecast panelists project harmonized inflation to average 1.7% in 2021, which is up 0.5 percentage points from last month’s estimate. In 2022, they see harmonized inflation averaging 1.3%.


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Luxembourg Inflation March 2021

Note: Month-on-month and year-on-year variation of consumer prices in %.
Source: Statistical Office of Luxembourg (STATEC)


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