FX.co ★ Luxembourg Inflation Rate Picks Up

The annual inflation rate in Luxembourg increased to 1.65% in April 2025, rising from a three-month low of 1.32% the month before. The primary contributors to this increase were food and non-alcoholic beverages, which rose to 1.59% from 0.85% in March; clothing and footwear, which increased to 1.15% from 0.78%; leisure and culture, climbing significantly to 2.99% from 0.34%; and miscellaneous goods and services, which were up to 1.48% from 1.24%. Additionally, the rate of deflation lessened for transport, shifting to -0.63% from -0.68%, and for furniture, household items, and home maintenance, improving to -0.45% from -0.64%. Conversely, price increases slowed in sectors like housing and utilities, which adjusted to 4.81% from 4.83%; hotels and restaurants, which eased to 2.31% from 2.59%; and alcoholic beverages and tobacco, which dropped to 2.15% from 3.17%. Meanwhile, deflation intensified in communications, declining further to -2.34% from -1.70%. On a monthly scale, consumer prices rose by 0.56% in April 2025, recovering from a 0.16% decline observed the previous month.