Financial News: Luxembourg Inflation Accelerates For Second Month

Luxembourg Inflation Accelerates For Second Month

(RTTNews) - Consumer price inflation in Luxembourg climbed for a second month in a row in May, driven by higher utility costs, preliminary figures from the statistical office STATEC showed on Wednesday.

The consumer price index rose 2.0 percent year-on-year in May after a 1.7 percent increase in April. Inflation was the highest since July 2024, when it was at the same level.

Core inflation that strips out volatile prices of food and energy accelerated to 2.3 percent from 2.1 percent.

Prices in the housing, water, electricity and fuels group registered the biggest increase of 5.4 percent in May. Communication costs declined 3.80 percent.

The CPI rose 0.6 percent month-on-month in May, same as in April. The monthly increase in prices was driven by higher prices for certain services, triggered in particular by the indexation of wages on May 1, STATEC said. Service prices surged 1.3 percent.

In April, <a href=https://www.rttnews.com/3536572/luxembourg-inflation-accelerates-first-time-in-4-months.aspx target=_blank >STATEC revised down the inflation forecast for this year to 1.9 percent</a> from 2.2 percent projected in February citing lower-than-expected inflation in the first quarter of the year and the sharp fall in oil prices in euros.

However, the forecast for next year was revised slightly upwards to 1.9 percent from 1.8 percent.

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