Luxembourg Inflation Rate Rises from 2.0% to 2.2% in June 2025

On Monday 7 July 2025, Luxembourg's national statistics institute, STATEC, reported that the annual inflation rate rose to 2.2% in June 2025, up from 2.0% in May.

In June, the national consumer price index increased by 0.1% compared to the previous month. STATEC attributed this slight monthly increase mainly to higher prices for petroleum products and food.

STATEC also highlighted that, after three consecutive months of declining prices, petroleum products saw a reversal in trend in June 2025, with prices rising by 1.4% over the month. Diesel prices at the pump became by 2.5%, petrol by 1.0%, and heating oil by 4.1%. Town gas prices, however, fell by 1.0%. Compared to June 2024, oil-based product prices were still 1.0% lower overall.

In terms of food, prices rose by 0.5% in June compared to the previous month. Meat contributed significantly to this increase, with pork prices up by 2.4%, poultry by 1.8%, and beef and veal by 1.2%. Additional increases were recorded for dried fruits and nuts (+3.1%) and soft drinks (+2.1%). At the same time, certain items saw price declines, including mineral water (-3.1%), eggs (-1.7%) and confectionery (-1.0%). Over one year, food prices were up by 2.3% compared to June 2024. Inflation was also fuelled by higher prices for personal hygiene products, which rose by 2.1%.

Following the price rebound in May due to wage indexation, service prices stabilised in June. Notable increases were recorded in package holiday prices (+6.3%) and financial services (+1.2%). These were offset by seasonal drops in the cost of daycare and halfway houses (-4.2%) and air transport (-12.6%). Year-on-year, service prices rose by 2.5%, compared to 2.6% in May.

The annual inflation rate thus stood at 2.2% in June 2025, compared to 2.0% the previous month. The annual core inflation rate remained stable at 2.3%. The general index for June, expressed in a base of 100 in 2015, was 125.82 points. The half-year average of the index linked to the 1 January 1948 base rose from 1019.75 to 1024.27 points. STATEC noted that the next wage indexation will be triggered when the value of 1038.79 is reached.