Luxembourg: Inflation eases in July
August 5, 2021
Harmonized consumer prices dropped 0.40% in July over the previous month, swinging from the 0.30% rise logged in June. This was due to seasonal sales during the month.
Harmonized inflation came in at 3.3% in July, down from May’s 3.4%. Annual average harmonized inflation ticked up from 1.0% in June to 1.3% in July. Lastly, inflation eased rose from 2.2% in June to 2.3% in July.
Analysts at the EIU added:
“In 2021 we expect inflation to spike to an average of 3.2%, after slowing to 0% in 2020, as consumer demand recovers and oil prices increase. In 2022 we expect inflation to average 1.7% as oil prices rise further. Inflation will remain modestly higher than the euro zone average of 1.4% in 2021-22.”