The consumer price index fell to 0.0% in May 2016, primarily due to oil products.

Information collated by statistics portal STATEC found that the index progressed 0.3% from the previous month, with inflation remaining very low in Luxembourg with a slightly negative annual rate of -0.03%. The annual rate of core inflation has stabilised around 1.0% since the beginning of the year.

After a futher decline in April, the index for petrol products saw a 4.1% increase. The price of heating oil and diesel were the biggest stimulants for inflation, with monthly increases of 12.0% and 5.9%, respectively. The price of gesoline (1.6%), also on an uoward trajectory, saw a smaller rise than a month ago. However, prices for products from black gold are lower by 16.5% compared to the month of May last year and this difference even reaches 27.6% for oil heating fuel.

Prices of goods and services, excluding oil products, increased by 0.1% compared to April, with the largest increases experienced in air passenger transport (7.2% from April) and pizzas and quiches (5.7%). Although less pronounced in comparison, prices for mobile phone services (3.8%) and fresh fruit (2.4%) had a greater impact on the overall result due to their higher weighting in the index.

In May, consumers had to pay more for food products (0.5%), including fish and seafood, vegetables, fats and oils and meat. As for cuts, fiction books fell 3.9%, sound and image devices -3.5%, and personal hygiene items -0.8%. Package tours and spirits and liquors also experienced a downward trajectory.

 

Image by STATEC