Inflation in Luxembourg is accelerating again

Inflationary pressures in Luxembourg resumed in June 2025, with the annual inflation rate rising to 2.2% from 2.0% a month earlier. The national consumer price index (IPCN), calculated by the state statistics institute STATEC, rose by 0.1% over the month. Petroleum products and foodstuffs were the main drivers.

After three months of decline, prices for petroleum products went up again. The cost of diesel fuel rose by 2.5%, petrol by 1.0%, and heating oil by 4.1%. At the same time, gas became cheaper by 1.0%. On an annualised basis, prices for oil products are still 1.0% lower than in June 2024, indicating continued instability in the energy market.

At the same time, food prices rose by 0.5 per cent on average. The growth was especially noticeable in the meat category: pork rose in price by 2.4%, chicken - by 1.8%, beef and veal - by 1.2%. Nuts and dried fruits (+3.1%) and sweet drinks (+2.1%) also rose in price. However, the price of mineral water fell by 3.1%, eggs - by 1.7%, and sweets - by 1.0%. In annual terms, food products rose in price by 2.3%.

Against the background of rising prices for goods, the services sector showed stability. Although in June the cost of tour packages increased by 6.3% and financial services by 1.2%, this was partially offset by seasonal declines in prices for childcare services (-4.2%) and air tickets (-12.6%). The annual growth of prices in the services sector amounted to 2.5%, slightly decreasing compared to May (2.6%).

The so-called "inflation without fluctuations" - an index cleared of the influence of the most volatile categories - remained at 2.3 per cent, indicating a stable overall background of inflationary pressures.

The consumer price index for June (base 2015 = 100) amounted to 125.82 points. The average value of the index for the first half of the year is 1024.27, and as soon as this index reaches 1038.79, the next mechanism of automatic indexation of wages will be launched.