Luxembourg Inflation Rate Rises to 3-Month High

The annual inflation rate in Luxembourg rose to 2.4% in March 2026, up from 1.3% in the previous month, marking the highest level since December 2025. Costs rebounded in housing and utilities (1.7% vs -1.2% in February), while price growth accelerated in transportation (4.2% vs 0.2%), recreation, sport and culture (4.7% vs 3.8%), restaurants and hotels (2.9% vs 2.5%), and furnishings and household equipment (0.9% vs 0.7%). At the same time, prices held steady for food and non-alcoholic beverages (2.8%) and education (6.2%). Meanwhile, inflation eased in alcoholic beverages and tobacco (2.6% vs 4.2%) and health (1.8% vs 2.3%). Prices for clothing and footwear were flat after a 0.1% decline in February, while information and communication fell (-1% vs 0.7%). On a monthly basis, consumer prices rose 0.9%, slowing from 1.2% in the preceding period.

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.