Inflation rate in Luxembourg rises to 2.4% in March, almost double that of February

The inflation rate in Luxembourg rose to 2.4% in March, up from 1.3% the previous month, according to Statec, Luxembourg’s statistics body.

The shift in inflation rate was mainly linked to a sharp increase in energy prices during the month, while other components of the consumer price index showed more moderate movements.

‘Due to the closure of the Strait of Hormuz caused by the war in Iran, energy prices rose sharply in March,’ Statec noted.

Consumer price index

The overall consumer price index rose by 12.2% compared with February, with energy prices the main driver of this increase – heating oil rose by 37.3% compared with the previous month and by 33.2% year-on-year. Motor fuel prices also increased strongly in March, with diesel rising by 22.2% in one month and petrol by 10.7%. Gas and electricity prices remained stable over the same period.

Elsewhere, food prices, including alcohol and tobacco, increased by 2.7% compared with March 2025. Within this category, fresh meat rose by 5.6%, vegetables by 3.6%, and coffee by 11.5%.

Some food items recorded declines, including vegetable oil and pasta. On a monthly basis, food prices increased slightly (+0.2%), while alcoholic beverages decreased due to promotional pricing across wine, beer, and spirits.

Services prices

Services prices rose by 2.5% compared with the previous year, up from 2.2% in February, the statistics body noted. This increase was linked to higher costs for package holidays, childcare services, and banking fees, which rose by 8.0% year-on-year.

Non-energy industrial goods recorded a 1.0% annual increase, the lowest among the core categories. Price increases were seen in items such as jewellery and watches, while household cleaning products also rose, however furniture prices declined in March due to promotional activity.

The overall index reached 101.39 points based on a 2025 base of 100, Statec noted. Read more here.