On Monday 8 September 2025, Luxembourg's national statistics institute, STATEC, reported that the annual inflation rate stood at 2.4% in August 2025, up from 2.3% in July.
In August, the national consumer price index increased by 1.3% compared to the previous month. STATEC attributed this rise mainly to the end of the summer sales. Excluding sales-related fluctuations and petroleum products, other goods and services rose by 0.4%.
The “Clothing and footwear” category saw the strongest rebound, with prices increasing by 18.9% compared to July. Other sales-affected categories also rose, including household appliances (+2.5%), jewellery (+5.9%) and audiovisual, photographic and IT equipment (+1.7%). On a yearly basis, clothing and footwear prices increased by 0.2% and 1.6% respectively.
Seasonal effects also played a role: package holiday prices and airline tickets rose by 6.4% in August, whilst childcare and day-care centre fees increased by 12.3%. Mobile phone services, on the other hand, fell by 1.4%. Overall, the annual growth rate for services remained stable at 2.7%.
Food prices remained broadly unchanged (+0.1%), although detailed data showed diverging movements. Cheese (-1.2%), skimmed and semi-skimmed milk (-1.5%) and flour (-1.8%) became cheaper, while beef and veal (+2.2%), pasta (+2.8%) and coffee (+2.4%) recorded increases. Over one year, food prices were 2.7% higher.
Energy prices showed mixed developments: petrol rose by 0.9%, diesel fell by 2.6% and heating oil decreased by 4.8%, while town gas remained stable. Despite an overall monthly decline of 1.3% in petroleum products, their prices were still 2.1% higher than in August 2024.
STATEC reported that the annual core inflation rate remained unchanged at 2.4%. The general index for August, expressed in a 2015 base of 100, was 126.75 points. The half-yearly average of the index linked to the 1 January 1948 base rose from 1,027.28 to 1,030.48 points. The next wage indexation will be triggered when the threshold of 1,038.79 points is reached.
