Luxembourg inflation rises as euro area rate stabilises

Luxembourg’s annual inflation rate rose by 0.2 percentage points to stand at 2.7% in July, according to EU statistics bureau Eurostat. The agency calculates inflation based on its Harmonised Index of Consumer Prices. At the start of August, Eurostat’s flash estimate projected an inflation rate of 2.6% for Luxembourg in July.

In July 2024, by comparison, Luxembourg was experiencing an annual inflation rate of 2.7%. It fell to as low as 1.5% in March this year.

The Grand Duchy’s rate remains above the EU average of 2.4%. Compared with June 2025, annual inflation fell in eight member states, remained stable in six and rose in 13, according to Eurostat.

Luxembourg’s 2.7% rate is also significantly higher than the 2.0% average across the 20-member states of euro area, which is the European Central Bank’s target rate. In July 2024, the euro area rate was as high as 2.6%.

Eurostat said the highest contributions to the annual euro area inflation rate in July came from services, which rose by 1.46 percentage points, as well as food, alcohol and tobacco, which were up by 0.63 percentage points.

The lowest annual rates last month were registered in Cyprus (0.1%), France (0.9%) and Ireland (1.6%). The highest were recorded in Romania (6.6%), Estonia (5.6%) and Slovakia (4.6%).

Earlier this month, Luxembourg’s national statistics office Statec reported an annual inflation rate of 2.3% for the Grand Duchy using slightly different methodology to that of Eurostat.