Luxembourg Inflation Rate Picks Up

The annual inflation rate in Luxembourg stood at 1.3% in February 2026, unchanged from the previous month, and remained at its lowest level since December 2024. Price growth slowed in food and non-alcoholic beverages (2.75% vs. 2.81% in January), health (2.28% vs. 2.6%), furnishings and household equipment (0.72% vs. 1.12%), and recreation and culture (3.76% vs. 6.58%). Meanwhile, costs in education remained unchanged at 6.17%. The slowdown was partly offset by faster price increases in alcoholic beverages and tobacco (4.24% vs. 3.6%) and insurance and financial services (1.79% vs. 1.58%), while prices rebounded in information and communication (0.67% vs. -0.55%) and transportation (0.23% vs. -0.38%). Deflation also eased in clothing and footwear (-0.05% vs. -3.26%) and housing and utilities (-1.17% vs. -1.55%). On a monthly basis, consumer prices rose by 1.2%, rebounding sharply from a 1.3% contraction in the preceding period.

The annual inflation rate in Luxembourg slowed sharply to 1.3% in January 2026, marking the lowest level in December 2024, down from 3.1% in the previous month. Main downward pressure came from a steep drop in housing and utilities (-1.55% vs. 7.76% in December), reflecting significantly lower energy costs, including a 10.5% decline in electricity prices, supported by government contributions to network usage fees. Petroleum products also continued their downward trend. Prices fell for clothing and footwear (-3.26% vs. -0.09%), transport (-0.38% vs. 1.39%), and information and communication (-0.55% vs. -1.6%). Meanwhile, inflation eased for food and non-alcoholic beverages (2.81% vs. 3.43%) and financial services (1.58% vs. 2.24%). On a monthly basis, consumer prices dropped 1.3% in January, the largest decline since January 1999, following a 0.1% increase in December.

The annual inflation rate in Luxembourg edged up to 3.1% in December 2025 from 3% in November. This marked the highest reading since March 2024, largely driven by higher prices for food and non-alcoholic beverages (3.43% vs 2.78% in November), housing and utilities (7.84% vs 7.44%), miscellaneous goods and services (2.71% vs 1.78%), and restaurants and hotels (2.97% vs 2.84%). Conversely, price growth slowed for transport (1.36% vs 2.26%), furnishings and household equipment (0.6% vs 1.52%), and recreation and culture (2.58% vs 3.95%). On a monthly basis, consumer prices increased by 0.1% in December, following a 0.2% drop in each of the previous two months. The core annual inflation rate rose to 2.9% in December from 2.6% in November.