Luxembourg’s inflation rate fell from 1.9% to 1.7% this May, according to figures released on Friday by national statistics agency, STATEC. 

The national consumer price index showed a monthly change of 0.1%, with prices excluding petroleum products rising by 0.3%, while prices for petroleum products fell by 3.6%. In the midst of that, the price of heating oil fell by 7.8% compared to the month before. At the pump, the cost of diesel fell by 4% and gasoline, while gasoline fell by 3.3%. 

Nonetheless, prices for petroleum products overall remain 5.6% higher than this time last year. 

And while filling it up might be cheaper, the cost of buying a car in the first place rose by 0.3% compared to April, and tyres by 1.2%. 

The fall in oil prices hides some dynamism in other goods and services, with services rising 0.3%. 

Domestic services went up 1.2% compared with April, having the biggest impact on the overall index. On the other hand, air passenger transport rose 7.2%, restaurants and cafes went up 0.2%) and retirement and care homes by 0.3%, boosted underlying inflation this month. In addition, there is a slight upward impact from rents, package tours, mobile phone services and food and beverage services. 

Prices are also climbing for some food products such as fresh fruit, other bakery products, dried, salted or smoked meats, cheese and ice cream. Overall, food prices rose 0.8% in one month, and 2.8% against this time last year.

Outside of petroleum products, price decreases, with effect on the general index, were recorded for plants and flowers  down 2.2%, poultry meat, -1.8%, internet access, which saw a fall of 1.5%, and furniture which fell half a percentage point.  

As a result, the annual rate of inflation is down to 1.7%. 

On the other hand, the underlying inflation rate is on an upward trajectory since the beginning of the year marked by a wage indexation, rising from 1.4% to 1.5% between April and May. 

The general index for the month of April expressed in base 100 in 2015 is 102.12 points. The half-yearly average of the index connected to base 1.1.1948 increases from 838.19 to 840.01 points. 

The next indexing will be triggered when the value of 852.63 is reached or exceeded