Cost of living: Luxembourg's annual inflation rate remains stable at 2.2%

Annual inflation remained unchanged for a third consecutive month in August, as lower gas and electricity prices were offset by higher fuel and other costs. Luxembourg's annual inflation rate remained at 2.2% in August, unchanged from June and July. Energy prices fell by around 2% compared with the previous month, largely due to government measures aimed at reducing household gas and electricity costs. Electricity and gas prices both dropped sharply in August.

However, energy remains more expensive than a year ago overall. Diesel in particular rose by more than 12% in a single month and is now around a third more expensive than in August 2025. Petrol prices have also increased over the past year. Prices for food and services continued to rise moderately, while clothing and footwear became significantly more expensive compared with July as prices returned to normal following the summer sales.

The figures were published by the National Institute for Statistics and Economic Studies (STATEC). More details can be found here.