Statec reported a 1.7% annual inflation rate in April 2025, with rising consumer prices, falling fuel costs and a 2.5% automatic increase in salaries. Library photo: Guy Wolff

Statec reported a 1.7% annual inflation rate in April 2025, with rising consumer prices, falling fuel costs and a 2.5% automatic increase in salaries. Library photo: Guy Wolff

Luxembourg’s inflation rose to 1.7% in April 2025, driven by higher travel and food costs despite falling petroleum prices, the national statistics bureau Statec has confirmed.

Luxembourg’s annual inflation rose to 1.7% in April 2025, up from 1.3% the previous month, Statec, the national statistics bureau. The increase was largely attributed to seasonal rises in travel costs during the Easter holidays and higher food prices.

The rise in the consumer price index triggered a wage indexation adjustment, as previously , resulting in a 2.5% increase in wages, salaries and pensions from 1 May 2025.

Statec reported that the national consumer price index increased by 0.6% in April compared to March 2025. This rise was driven primarily by seasonal effects, as the Easter holidays placed upward pressure on prices in the travel and hospitality sectors. Airfare prices surged by 38.9% month-on-month, while package holidays rose by 16.4% and hotel rates increased by 2.9%.

Petroleum product prices declined for the second consecutive month. Statec stated that oil-based product prices were down 2.4% compared to March. At the pump, petrol prices fell by 0.4% and diesel prices by 4.1%. Heating oil saw a significant drop of 6.7%, while town gas prices remained unchanged. Compared to April 2024, petroleum product prices were 6.1% lower.

The services sector recorded a 1.1% rise in April, mainly due to higher rents (up 0.3%) and online advertisement fees (up 1.7%). This was partially offset by a 3.8% decline in prices for nurseries and after-school care services. Year-on-year, the services aggregate was up 2.3%, according to Statec.

Food prices rose by 0.5% compared to March. Notable increases included fresh fruit (up 2.0%), coffee (up 3.0%), dried, salted or smoked meat (up 1.0%) and pork (up 3.6%). These gains outweighed declines in olive oil (down 3.4%), pasta (down 2.3%) and rice (down 1.2%). Compared to April 2024, overall food prices were up 1.7%.

In the alcoholic beverages and tobacco category, which saw a 0.6% monthly increase, Statec noted diverging trends. Cigarette prices rose by 3.0% over the month and by 13.1% year-on-year. In contrast, wine prices fell by 3.1% in April and by 4.7% over the year.

The next consumer price index results, for May 2025, will be published on 4 June 2025.

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