FX.co ★ Luxembourg Inflation Rises to 15-Month High

The annual inflation rate in Luxembourg increased to 2.4% in August 2025, up from 2.3% in the previous month. This figure represents the highest level since May of the previous year, largely influenced by a rise in the prices of clothing and footwear, which climbed by 0.5% compared to a decrease of 1.9% in July. Health sector costs rose to 1.3% from 0.8%, while transport costs went up by 1% from 0.3% previously. Meanwhile, the decline in communication costs slowed, falling by 0.6% as opposed to 1.6% earlier. On the other hand, price inflation for alcoholic beverages and tobacco eased slightly to 2.2% from 2.3%. Prices for furnishings, household equipment, and maintenance saw a significant drop, moving from a 0.9% increase to a 0.2% decline. On a month-to-month basis, consumer prices surged by 1.3% in August—the most significant rise since February 2024—bouncing back from a 0.5% decrease in the previous period.