At a meeting of the Price Formation Commission of the Consumer Council on 16 March 2017, the Price Development Observatory presented a new edition of its half-yearly report, which includes an analysis of the evolution of inflation in Luxembourg, a comparison of inflation with neighbouring countries and an analysis of the evolution of Prices for the year 2016.

The Commission, made up of representatives of consumers, employers' organisations and the government, is responsible for studying and discussing the analyses and reports of the Observatory of the formation of prices.

According to the report, domestic inflation continued to decline in 2016, with an average annual rate of 0.29%, compared to 0.47% in 2015. The decline in inflation was largely due to the decline in petroleum products, which fell by 10.4% in 2016. 

Luxembourg inflation was almost identical to that of the euro area in 2016, and slightly below that of France and Germany. Only Belgium posted a much higher inflation rate following the increase of several administered prices such as electricity and communal taxes.