Luxembourg: Inflation eases in March
Consumer prices rose 1.00% from the previous month in February, down from February’s 2.18% increase. The print reflected a drop in recreation and culture prices, partly offsetting a strong increase in transport prices, with fuels and lubricant for personal transport equipment skyrocketing.
Consumer price inflation eased to 6.1% in March from 6.6% in February. Meanwhile, harmonized inflation rose to 7.9% in March from 7.8% in February. However, the trend pointed up, with annual average harmonized inflation coming in at 4.9% in March (February: 4.6%).
Looking to next year, analysts at the EIU added:
“We expect inflation to accelerate in 2022, to 3.8%, as supply-side pressures intensify owing to materials shortages. Average inflation in 202223, at 2.8%, will be slightly higher in Luxembourg than in the euro zone (2.4%).”