FX.co ★ Luxembourg Inflation Rate Slows to 3-Month Low

The annual inflation rate in Luxembourg eased to 1.3% in March 2025, down from 1.7% in February. This is the lowest inflation rate recorded since December 2024. The deceleration was primarily driven by a slowing in the price increases for clothing and footwear (0.78% compared to 1.36% in February), recreation and culture (0.34% versus 2.03%), and restaurants and hotels (2.59% compared to 2.86%). Conversely, there were declines in costs for furnishings, household items, and routine household maintenance (-0.64% versus -0.29%), health (-0.04% compared to 1.63%), and transport (-0.68% compared to 0.4%). However, inflation continued to rise in the categories of food and non-alcoholic beverages (0.85% compared to 0.78%), alcoholic beverages and tobacco (3.17% compared to 2.41%), and miscellaneous goods and services (1.24% compared to 1.11%). Month-on-month, consumer prices decreased by 0.16% in February, contrasting with a six-month high increase of 1.19% in the previous period.