FX.co ★ Luxembourg Inflation Hits 14-Month High

In July 2025, Luxembourg experienced a slight rise in its annual inflation rate, reaching 2.3%, up from 2.2% in June, and marking the highest rate since May 2024. This increase was largely attributed to accelerated price hikes in several categories: food and non-alcoholic beverages saw a jump from 2.2% to 2.6%; recreation and culture went up from 2.2% to 3.6%; household goods and maintenance increased from 0.3% to 0.9%; and prices in the restaurant and hotel sector rose from 2.2% to 2.8%. Additionally, the rate of price decline in communication services slowed from -4.6% to -1.6%, adding more pressure to the overall inflation rate. Nonetheless, these rises were somewhat counterbalanced by a deceleration in price growth within the housing and utilities sector, dropping from 5.7% to 5.3%, as well as in miscellaneous goods and services, which slightly decreased from 2.4% to 2.3%. The transport sector experienced a more noticeable slowdown from 1.0% to 0.3%, while clothing and footwear shifted from a price increase of 0.9% to a decline of -1.9%. On a monthly comparison, consumer prices fell by 0.53% in July, reversing the 0.13% increase noted in June, and breaking a pattern of three consecutive months of price increases.