Luxembourg Annual Inflation Falls to 1.7% in February

On Wednesday 5 March 2025, Luxembourg’s national statistical institute, STATEC, reported that the annual inflation rate fell to 1.7% in February 2025 - down from 1.9% in January.

In February, Luxembourg’s national consumer price index, calculated by STATEC, rose by 1.2% compared to the previous month. Excluding the impact of the winter sales, the index would have risen by 0.4% over one month.

STATEC said the monthly increase was mainly due to price increases after the winter sales, particularly in the areas of clothing and footwear (+15.5% compared to January), leisure and culture (+4.0%) and furniture, household items and routine home maintenance (+1.0%).

Several other price increases impacted inflation in February. These include prices for package holidays (+14.3%), due to the carnival school holidays, and those for plants and flowers (+7.5%), boosted by Valentine's Day. Postal services (+17.9%) and bundles (combined internet, mobile and television offers; +2.9%) also increased compared to January.

The aggregate of petroleum products rose by 0.3% compared to January. Household fuel bills fell by 0.4% compared to the previous month. At the pump, the price of Diesel dropped by 0.3%, while the price of a litre of petrol increased by 1.2% over one month. The prices of black gold derivatives in the index basket were 0.1% lower compared to the previous year.

Food prices remained stable compared to January. On the one hand, the biggest increases were observed for rice (+5.5%), cocoa (+5.0%), jam and honey (+2.6%) and crisps (+2.2%). On the other hand, price decreases were recorded for fresh fish (-7.3%), baby food (-2.9%) and olive oil (-1.6%). Overall food prices were 0.9% higher than in February 2024.

The annual inflation rate thus stood at 1.7% in February. The underlying annual inflation rate remained stable at 1.7%. The general index for the month of February expressed in base 100 in 2015 amounted to 124.41 points. The half-yearly average of the index linked to the base 1.1.1948 increased from 1010.80 to 1011.57 points.

STATEC recalled that the next wage indexation will be triggered when the value of 1013.46 is reached, i.e. when 2.5% of inflation has accumulated since the last index bracket (currently 2.3 percentage points). STATEC has thus confirmed its previous forecasts that a wage indexation can be expected in the second quarter of 2025.