Annual inflation in Luxembourg is estimated to have reached 9.0% in April 2022 with respect to the Harmonised Index of Consumer Prices (HICP), according to a flash estimate by European statistics agency Eurostat - the highest rate recorded for Luxembourg since 1985.

Euro area inflation is estimated at 7.5% and is also at an all-time high since the data was first availabile in 1995. Of the eighteen European Union (EU) Member States for which the inflation rates for April 2022 were reported by Eurostat, the highest was recorded for Estonia at 19.0%, followed by Lithuania (16.6%), Latvia (13.2%) and the Netherlands (11.2%).

The official annual inflation in Luxembourg is published monthly by the national statistics agency Statec, according to the national consumer price index (indice des prix à la consommation national - IPCN), which is the consumption on national territory by Luxembourg households, while HICP accounts for total consumption on the national territory, including that of non-residents, and hence they are reported differently.

According to Statec, April 2022 inflation was estimated at 7.0%, up from 6.1% in the previous month. One of the main contributors of the current inflation is the increase in fuel prices, which recorded a 5.6% increase from March 2022 and nearly double (up 95.36%) than that from a year earlier. While gas prices in April 2022 remained largely similar to the preceding month (up 0.01%), an increase of 83.7% was recorded compared to April 2021.

The average inflation rate in Luxembourg in the first four months of 2022 was 5.8%, compared to 2.5% for the whole 2021 and only 0.8% in 2020.

Statec also revised its inflation forecasts for the of whole 2022 to 5.8%, up from 4.4% in the February forecast. According to the recent inflation forecast, a new indexation is likely to be triggered in June 2022 and applicable in July 2022. However, in accordance with the "Solidariteitspak", the indexation will be postponed until April 2023.

According to the latest forecast of the  International Monetary Fund (IMF), an inflation rate of 5.3% is expected for the eurozone for 2022.