Financial News: Luxembourg Inflation Accelerates First Time In 4 Months

Luxembourg Inflation Accelerates First Time In 4 Months

05/07/2025 - 15:56:00 (RTTNews)

(RTTNews) - Consumer price inflation in Luxembourg climbed in April for the first time since the start of the year, official data showed on Wednesday, and the statistical office Statec revised down the price growth projection for this year citing a steep fall in oil prices.

The consumer price index rose 1.7 percent year-on-year following a 1.3 percent increase in March. This was the first acceleration in inflation since January.

The CPI edged up 0.6 percent from March when it decreased 0.2 percent. The statistical office attributed the rebound to an upward seasonal effect for travel expenses, which was partially offset by the decline in petroleum product prices in April.

The monthly change in the CPI triggers an index-linked increase of 2.5 percent in wages, salaries and pensions from May 1, 2025, the statistical office said.

Separately, the statistical office said inflation is set to rise further in the coming months, reflecting both the impact of wage indexation and the strengthening of positive base effects on energy, particularly at the end of the year.

That said, Statec revised down the inflation forecast for this year to 1.9 percent from 2.2 percent projected in February citing lower-than-expected inflation in the first quarter of the year and the sharp fall in oil prices in euros.

However, the forecast for next year was revised slightly upwards to 1.9 percent from 1.8 percent.

Services inflation is projected at 1.9 percent this year and 2.1 percent next year. Food inflation is forecast to be 1.6 percent this year and then rise to 1.9 percent next year.

Energy inflation is expected to slow from 7.2 percent this year to 4.2 percent in 2026, reflecting negative base effects. The next wage indexation is projected to take place in the third quarter of 2026.

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