Luxembourg’s annual inflation rate fell to 2.3% in May from 3.1% in April, according to Statec, as energy prices eased over the month and services inflation moderated. The national statistics bureau announced on 3 June 2026 that the all-items index excluding energy also declined, falling to 1.2% in May from 1.9% in April. Core inflation, which excludes energy, food, alcohol and tobacco, also fell to 0.92%, lowest since February 2021.
Statec attributed the slowdown mainly to a 2.5% month-on-month fall in energy prices and a more moderate rise in service prices. Energy prices nevertheless remained significantly higher than a year earlier, increasing 16.1% compared with May 2025.
Energy prices down
The fall in energy prices was largely due to heating oil, Statec noted. After rising sharply by 23.0% in April, heating oil prices fell 10.7% in May. On an annual basis, however, they remained 62.9% higher.
Fuel prices also declined by 1.4% month on month, while rising 29.2% year on year. The price per litre of diesel fell 7.1% over the month, while petrol increased 4.2%.
Gas prices rose 2.5% compared with the previous month, while electricity prices were stable in May, said Statec.
Food prices rise
Food was not the main driver of the fall in headline inflation, as the food aggregate, including alcohol and tobacco, still rose 2.1% year on year compared with May 2025. Statec found that several food categories continued to record notable annual increases. Fruit vegetables rose 11.5%, chocolate increased 7.9% and coffee was up 6.3%.
By contrast, prices for cereals and ice cream fell 3.3% and 2.7% respectively. Alcoholic beverages recorded a monthly decline of 0.4%, driven in particular by a 0.6% fall in wine prices, while their prices remained broadly stable on an annual basis.
Services inflation ease
Services prices rose 1.3% year on year in May, compared with 2.3% in the previous month. Statec attributed the slowdown largely to the increases recorded in May 2025 after the index-linked adjustment, which no longer contributed to the annual change this month.
Monthly movements in services were shaped by seasonal fluctuations. Airfares rose sharply by 21.4% over the month, although they were 7.7% lower year on year.
Fees for crèches and after-school care centres declined 6.5% month on month. Bundled telecommunications services, by contrast, recorded a significant monthly rise of 11.8%, noted Statec.
