Luxembourg’s annual inflation rate held steady at 1.3% in February 2026, unchanged from January and remaining at its lowest level since December 2024. Price growth eased in several categories, including food and non-alcoholic beverages (2.75% vs. 2.81% in January), health (2.28% vs. 2.6%), furnishings and household equipment (0.72% vs. 1.12%), and recreation and culture (3.76% vs. 6.58%). Education costs were stable, with inflation in the sector unchanged at 6.17%.
The overall slowdown was partly offset by stronger price increases for alcoholic beverages and tobacco (4.24% vs. 3.6%), as well as for insurance and financial services (1.79% vs. 1.58%). Prices also returned to positive growth in information and communication (0.67% vs. -0.55%) and in transportation (0.23% vs. -0.38%). Deflation moderated in clothing and footwear (-0.05% vs. -3.26%) and in housing and utilities (-1.17% vs. -1.55%). On a monthly basis, consumer prices rose by 1.2%, sharply reversing the 1.3% decline recorded in the previous month.
