facebook
Luxtoday

Inflation in Luxembourg rose to 2%

Last time updated
04.06.25
Inflation in Luxembourg

Fellipe Ditadi, Unsplash

The consumer price index, calculated by the national statistical institute STATEC, rose by 0.6% in May compared to April. Annual inflation was 2.0%, against 1.7% a month earlier, while the so-called "core" inflation reached 2.3%. The main factor was wage indexation, which automatically took effect on 1 May and triggered a chain reaction in the services sector.

Over the month, the cost of services rose by 1.3%, especially noticeable in elderly care facilities (+2.3%), kindergartens and day care centres (+11.8%), as well as home repairs (+2.0%) and car repairs (+1.1%). Household services (+2.6%), the restaurant sector (+0.8%) and home insurance (+0.8%) also rose in price.

Prices for medical and dental services have also risen - their tariffs are directly linked to wage indexation, making increases almost inevitable under the current model of the social system.

The overall increase in food prices was +0.1%. Pasta (+1.5%), chocolate (+2.3%) and coffee (+2.4%) became more expensive, while fresh vegetables fell in price by 4.1%, fruit by 1.4% and chicken by 1.2%. In annual terms, the cost of products increased by 1.5%.

The sharpest jump was noted for air tickets (+17.9%). Prices for jewellery and watches (+2.2%), tyres (+0.9%) and household cleaning appliances (+6.8%) also rose.

A pleasant exception is petroleum products, which fell in price by 1.7% over the month. Petrol and diesel fell in price by 1.4% and 2.2% respectively, heating oil - by 3.8%. The cost of natural gas remained unchanged. In annual terms, fuel prices fell by 4.1%.

The overall price index (base 2015 = 100) reached 125.66 points. The semi-annual average (recalibrated to 1948) is 1019.75 points. The next threshold at which wage indexation will be activated again is 1038.79 points.

Send feedback
Last time updated
04.06.25

We took photos from these sources: Fellipe Ditadi, Unsplash

Authors: Alex Mort

Stay in the loop!

Get useful tips, local news, and expat guides for life in Luxembourg — straight to your inbox.