Luxembourg inflation below EU average, prices creep up from end of year

Luxembourg’s annual inflation stood at 2.4% in January, European statistics agency Eurostat said on Monday in updated consumer price data, below the EU and eurozone’s averages but in a small increase from the end of last year.

The Grand Duchy’s annual inflation rate went down from 3% in January 2024. Standing at a 1.6% annual inflation rate at the end of 2024, Luxembourg showcased a 0.8 percentage point increase in January 2025.

EU inflation peaked at 10.5% in October 2022, following Russia’s invasion of Ukraine in February that year triggerig an energy crisis and rising prices. The rate decreased to 2.8% in January 2025. The average of the 20 countries using the euro currency stood at 2.5%.

This left Luxembourg just below European and eurozone average, but above the European Central Bank’s target rate of 2%.

Croatia saw the highest annual inflation rate in the eurozone in January, reaching 5%, while Ireland and Italy both stood at 1.7% at the bottom end. Denmark, which pays in the kroner currency, had the lowest inflation rate in the EU at 1.4% with Hungary (which pays in forint) at the top end of the scale at 5.7%.

Annual inflation rates (%) in January 2025 © Photo credit: Eurostat

Energy reached a 1.9% annual inflation rate in January 2025 compared to 0.1% in December 2024, while non-energy industrial goods have not changed their rate of 0.5%.

Eurostat will release data in a flash estimate of the euro area inflation for February 2025 on 3 March.