Luxembourg: Inflation eases in January
Consumer prices rose 0.12% from the previous month in January, swinging from December’s 0.08% decrease. The print was driven by a notable rise in prices for housing, water, electricity, gas and other fuels; transport; and, food and non-alcoholic beverages. Prices for clothing and footwear fell markedly, however.
Consumer price inflation eased to 3.6% in January from 4.1% in December. Meanwhile, harmonized inflation eased to 4.6% in January from 5.5% in December. However, the trend pointed up, with annual average harmonized inflation coming in at 3.8% in January (December: 3.5%).
Looking to next year, analysts at the EIU added:
“We expect inflation to accelerate in 2022, to 3.7%, as supply-side pressures intensify owing to materials shortages and the Omicron variant.”