FX.co ★ Luxembourg Inflation Hits 18-Month High

Luxembourg experienced an increase in its annual inflation rate, reaching 2.7% in September 2025. This marks the highest rate since March 2024 and an increase from August's 2.4%. The primary contributors to this rise in inflation include a sharper acceleration in housing and utilities costs, which climbed from 5.3% in August to 6.1% in September, along with transport costs which rose from 1.0% to 2.1%. Additionally, there was a notable increase in education expenses, which surged from 0.6% to 6.2%. The furniture, household equipment, and maintenance sector also saw a turnaround, registering a 0.4% increase after previously recording a decline of 0.2%. Conversely, there was a deceleration in price growth within the food and non-alcoholic beverages segment, which slipped from 2.7% to 2.5%, as well as in alcoholic beverages and tobacco, which slowed from 2.2% to 1.8%. Other sectors such as recreation and culture, restaurants and hotels, and miscellaneous goods and services also reflected slower price growth, while communication costs continued to decline, moving from -0.6% to -1.7%. On a monthly scale, consumer prices decreased by 0.1% in September, offsetting the 1.3% rise observed in August.