Luxembourg's Annual Inflation Falls to 2.2% in June

On Wednesday 8 July 2026, Luxembourg's national statistical institute, STATEC, reported that annual inflation stood at 2.2% in June 2026, compared to 2.3% in May.

STATEC noted that this apparent stability masked contrasting trends: while the contribution from energy fell year-on-year, the contribution from services increased, mainly due to the wage indexation that took effect on 1 June 2026.

In June, energy prices remained 16.0% higher than in June 2025, while continuing their recent downward trend with a 6.5% fall compared to May. According to STATEC, the monthly decline was largely due to heating oil prices, which fell by 11.0% over one month, despite remaining 38.5% higher year-on-year.

Motor fuel prices followed a similar trend, falling by 6.7% month-on-month but remaining 18.7% higher than a year earlier. The price per litre of diesel fell by 7.6% compared to May, while petrol prices decreased by 6.0%. Gas and electricity prices remained unchanged in June.

The food category, including alcohol and tobacco, recorded a year-on-year increase of 1.4%. Fruit and vegetables (+11.1%), chocolate (+7.2%) and fresh meat (+5.0%) saw some of the strongest annual increases. By contrast, alcoholic drinks fell by 1.6% over one month, driven mainly by promotional offers on beer (-3.8%) and lower wine prices (-0.7%).

Service prices rose by 2.5% year-on-year, compared to 1.3% in May. STATEC attributed this increase mainly to the effect of wage indexation in June. Fees for care homes and nursing homes rose by 5.1% over the month, while prices also increased for housing maintenance and repair services (+2.5%), domestic services (+2.5%), home care services (+1.4%) and car maintenance and repair (+1.1%).

STATEC added that medical and dental service prices are automatically linked to wage indexation. Monthly increases with a noticeable impact on June's figures were also recorded for hairdressing salons (+1.7%) and the catering sector (+0.6%).

Seasonal fluctuations were observed in package holiday prices (+6.6%) and fees for nurseries and after-school care centres (+7.1%). Airfares fell by 9.7% month-on-month and by 4.6% year-on-year. Promotions also contributed to an 8.2% monthly fall in telecommunications package deals.

The category of non-energy industrial goods recorded a slight increase of 0.6% year-on-year and 0.1% month-on-month. The sharpest monthly rise was recorded for furniture, which increased by 1.1% compared to May.

The all-items index excluding energy rose from 1.2% in May to 1.7% year-on-year in June. The all-items index for June, expressed on a 2025 base of 100, stood at 102.54 points.

The six-month average of the index linked to the 1 January 1948 base rose from 1,041.62 to 1,044.80 points. STATEC noted that the next wage indexation will be triggered when the value of 1,064.75 is reached.