New statistics from Luxembourg show that annual inflation ticked up slightly at the end of 2025, rising from 3.0 % to 3.1 %, reflecting a continued upward trend in consumer prices for various goods and services. These figures, released by the national statistics office, mirror broader price pressures seen across parts of Europe.
Data indicate that while fuel and some energy costs have fluctuated, other categories — including food and services — have contributed to the overall increase. For example, prices for items such as beef, coffee and chocolate recorded noticeable year-on-year rises, impacting the overall inflation measure.
Despite the near-term increase, analysts note that upcoming changes to electricity tariffs and reduced energy costs may dampen inflation early in 2026. Adjustments in how the consumer price index is calculated will also affect future reporting.
Luxembourg’s inflation situation remains moderate compared with some other economies, supported in part by measures to stabilise utility costs and expected declines in certain price categories. Policymakers will continue to monitor developments closely as they plan economic and social policies.
These shifts come amid broader economic discussions in Europe about balancing cost-of-living pressures and sustainable growth in an evolving global market.
Read more: statistiques.public.lu/en/actualites/2026/stn01-26-ipc.html?referrer=grok.com
Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg.
Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.
I am your contact
Team
