The annual inflation rate in Luxembourg dropped to 1.8 percent in January of 2019 from 1.9 percent in the prior month, hitting its lowest level since August. Prices were flat for transport (from 0.9% in December), amid falling prices of diesel (-1.3% vs 5.0%) and gasoline (-5.5% vs -3.1%) and slowed mainly for housing & utilities (2.7% from 3.3%), such as electricity, gas and others (5.9% vs 8.5%). Meantime, inflation was steady for recreation & culture (at 0.8%) and education (9%). In contrast, cost continued to rise for food & non-alcoholic beverages (2.6% vs 2.4%), namely fish and seafood (2.5% vs 1.7%), vegetables (11.8% vs 9.7%) and meat (2.5% vs 2.0%); miscellaneous goods & services (3.1% vs 2.6%); furnishings (1.3% vs 0.9%) and restaurants & hotels (3% vs 2.9%). On a monthly basis, consumer prices fell 0.9 percent, after decreasing 0.3 percent in the prior month. Inflation Rate in Luxembourg averaged 2.14 percent from 1991 until 2019, reaching an all time high of 4.99 percent in October of 2005 and a record low of -1.35 percent in January of 1999.
Inflation Rate in Luxembourg is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Luxembourg to stand at 1.90 in 12 months time. In the long-term, the Luxembourg Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.