Luxembourg’s annual inflation rate stood at 1.7% in February 2025, marginally down from 1.94% in January, according to the national statistics bureau, Statec. The data, on 5 March 2025, revealed that the national consumer price index had increased by 1.2% in February compared to the previous month. However, excluding the impact of winter sales, the index rose by a more modest 0.4% on a month-to-month basis.

Statec clarified that the rise in the NCPI was largely attributed to the effects of the January winter sales, which impacted several sectors. The most notable increases were seen in the ‘clothing and footwear’ category, which surged by 15.5% compared to January, followed by a 4.0% rise in ‘leisure and culture’ and a 1.0% increase in ‘furniture, household goods and routine home maintenance’.

February’s core inflation, which excludes seasonal and volatile factors like food and energy, remained almost stable, slipping from 1.79% in January to 1.77%.

In addition to the seasonal effects of the sales, several other categories saw price increases in February. Package holiday prices rose by 14.3%, likely due to the school holiday period, while prices for plants and flowers increased by 7.5%, attributed to Valentine’s Day. Postal services saw a significant jump of 17.9%, and combined internet, mobile and TV offers rose by 2.9%.

Regarding petroleum products, the index showed a modest overall increase of 0.3%. However, there were notable price changes within the sector. The cost of heating oil decreased by 0.4%, while the price of diesel fell by 0.3% and petrol rose by 1.2%. On an annual basis, oil derivatives were 0.1% lower.

Food prices were largely stable compared to January, with an overall rise of 0.9% compared to February 2024. Specific food items showed varied price movements, with rice up by 5.5%, cocoa by 5.0%, jam and honey by 2.6%, and chips by 2.2%. Conversely, the prices of fresh fish, baby food and olive oil fell by 7.3%, 2.9% and 1.6%, respectively.

The general index scale, calculated using a 2015 base of 100, reached 124.41 points. Meanwhile, the six-month moving average of the linked index, based on the new linking coefficient from January 2025 and using the 1 January 1948 base of 100, increased from 1010.80 to 1011.57 points. The next wage indexation will be triggered once the linked index reaches 1013.46 points, which presently is forecast to happen during the second quarter of 2025.