Luxembourg inflation falls to 1.7%

Luxembourg's annual inflation rate fell from 1.9% to 1.7% in February 2025, according to the national statistics institute STATEC. Despite the general trend towards slower price growth, the monthly consumer price index rose by 1.2% compared to January. However, if we exclude the impact of winter sales, the real increase was 0.4%.

The main drivers of price growth were seasonal increases in the cost of goods and services associated with winter holidays and festivals. Significant growth was recorded in the categories "Clothing and footwear" (+15.5%), "Leisure and culture" (+4%) and "Furniture and household goods" (+1%).

In addition, the increase in prices for travel packages (+14.3%) due to holidays and the rise in prices for flowers and plants (+7.5%) on the background of Valentine's Day had a noticeable impact. Postal services (+17.9%) and combined internet, mobile and TV packages (+2.9%) also rose in price.

Prices for petroleum products remained relatively stable in February: diesel fell in price by 0.3%, while petrol rose by 1.2%. In annual terms, petroleum products fell in price by 0.1%.

As for food products, there were no significant changes in February. However, some items showed growth: rice (+5.5%), cocoa (+5%), jam and honey (+2.6%), crisps (+2.2%). At the same time, fresh fish fell in price by 7.3%, baby food by 2.9%, and olive oil by 1.6%.

Taking into account accumulated inflation, the next indexation of salaries is expected in the second quarter of 2025, when the overall inflation rate reaches 2.5%. At the moment, the accumulated rate is 2.3%, which confirms STATEC's forecasts.

The next publication of the price index for March 2025 will take place on 7 April 2025, and preliminary inflation data will be published on 31 March 2025.