Luxembourg: Harmonized inflation falls to lowest level in nearly four years in September
Latest reading: Harmonized inflation plummeted to 0.8% in September from August’s 1.7%, remaining below the ECB’s 2.0% target. September’s result marked the weakest inflation rate since February 2021 and was among the lowest in the Euro area. The decline was driven by a sharper decline in prices for transportation plus falling costs for housing and utilities. That said, price pressures for food and non-alcoholic beverages accelerated.
Accordingly, the trend pointed down mildly, with annual average harmonized inflation coming in at 2.6% in September (August: 2.8%). Meanwhile, consumer price inflation fell to 1.3% in September from August’s 1.7%.
Finally, harmonized consumer prices fell 0.49% in September over the previous month, swinging from the 0.95% increase logged in August. September’s result marked the weakest reading since November 2023.