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LUXEMBOURG – Prices jumped again in February under the influence of oil product prices. The next index tranche is imminent.
Wage indexation will fall soon.
“Petroleum product prices continue their upward trajectory,” Statec noted on Friday: +6.2% for diesel between January and February, +4.9% for gasoline, +12.1% for fuel oil . For its part, the price of town gas jumped 6.3%. Compared to February 2021, the prices of petroleum products are 51.7% higher. The price of electricity has also increased, by 6%.
Food prices for their part rose by 0.7% (+5.7% for couscous, +3.4% for seafood, +3.1% for fresh vegetables). Compared to February 2021, food prices are 3.5% higher. Other seasonal products are boosting inflation, such as the price of travel packages (+10.2%), due to the carnival holidays and those of flowers (+12.1%) boosted by Valentine’s Day.
The annual inflation rate stands at 6.6% and the underlying annual inflation rate is 4.3%. Statec notes, however, that these rates give a “distorted image of reality”: by shifting the date of the winter sales because of the Covid last year, the famous “sales effect” was also shifted from January to February . The 2022 figures are therefore necessarily “distorted”. By neutralizing this shift, the rates would be 5.5% and 3.2% respectively.
Statec indicated that “in all scenarios”, the next index tranche would be paid in the 2nd quarter of 2022”.
(mc)