Luxembourg inflation rate more than doubled in March, Eurostat says

Luxembourg’s annual inflation more than doubled to 3.8% in March, the bloc’s official statistics agency Eurostat said on Tuesday, hitting its highest level in three years.

The Grand Duchy’s rate was the third-highest of the 20 countries in the eurozone, surpassed only by Croatia (4.7%) and Lithuania (4.5%), and well above the eurozone average of 2.5% for March.

It marks a reversal of the trend of recent months, after Luxembourg’s rate fell from 3.3% in December 2025 to 1.6% and 1.8% in the opening months of 2026.

Luxembourg’s annual inflation rate has now risen to its highest level since February 2023, when it hit 4.8%.

Across the eurozone, energy costs were the main driver of inflation, rising 4.9% year-on-year in the wake of the latest US-Israel attack on Iran which began at the end of February. Services were up 3.2% year-on-year, while food costs were 2.4% higher.

On Friday, Energy Minister Lex Delles said that Luxembourg’s government is waiting for data to be published in May and June to assess the potential economic impact of higher energy prices.

The government has not ruled out supply shortages if the conflict continues for several more months.

Eurostat flash estimates give preliminary inflation data for euro area countries as soon as the previous month ends, whereas confirmed data released later on in the month includes a rate for both eurozone countries and the wider European Union.

Luxembourg’s official statistics agency, Statec, uses a slightly different methodology from Eurostat, and the two agencies’ calculations usually differ. Statec calculated February’s annual inflation rate for Luxembourg to be 1.3%, and will release March figures in early April.