FX.co ★ Luxembourg Inflation Highest in Nearly a Year

The annual inflation rate in Luxembourg climbed to 2.01% in May 2025, a notable increase from 1.65% in the preceding month. This represents the highest level since June 2024, primarily fueled by escalating costs in housing and utilities, which rose to 5.38% from 4.81% in April. Additionally, prices advanced across sectors such as hotels, restaurants, and cafes (up to 2.91% from 2.31%), miscellaneous goods and services (rising to 2.43% from 1.48%), alcoholic beverages and tobacco (increasing to 2.69% from 2.15%), and health (improving to 1.43% from 0.32%). Concurrently, transport costs experienced a recovery, posting a rise of 0.4% from a decline of 0.63% in the prior month. Conversely, inflation tapered in the leisure and culture sector, easing to 1.14% from 2.99%. On a month-on-month basis, consumer prices grew by 0.61% in May, slightly above the 0.56% increase observed in April.