Luxembourg’s annual inflation rate declined from 1.7% in February to 1.3% in March 2025, the national statistics bureau Statec on 7 April 2025. The report stated that the decrease was primarily driven by a significant drop in petroleum product prices, which also contributed to a 0.2% month-on-month decline in the national consumer price index.

Compared to February, petroleum products saw an overall decline of 3.4%. Heating oil prices fell by 6.0%, diesel prices dropped by 3.7% and petrol prices declined by 4.5%. Conversely, town gas prices rose by 1.0%. When compared to March 2024, petroleum-based products in the index were 2.7% lower.

The statistics bureau also highlighted the effects of seasonal pricing trends on the overall index. The price of cut flowers, which had increased in February due to Valentine’s Day, declined by 7.8% in March. Prices for accommodation services fell by 2.5%, while nurseries and afterschool care centres raised their tariffs by 4.0%.

Food prices rose by 0.2% compared to February, according to Statec. The sharpest increases were observed in chocolate, which rose by 4.5%, followed by butter at 2.7%, cheese at 1.3% and rice at 1.1%. In contrast, prices declined for fresh fish by 3.4%, fresh vegetables by 2.1% and breakfast cereals by 2.4%. On a year-on-year basis, food prices were up by 0.9%. Among non-food supermarket products, cleaning and maintenance items recorded a 2.4% price decline in March.

The general consumer price index, calculated using a 2015 base of 100, stood at 124.21 points for the month. Meanwhile, the six-month moving average of the index, based on the 1 January 1948 base, increased from 1011.57 to 1012.69 points. The next wage indexation will be triggered once the linked index reaches 1013.46 points.