The annual inflation rate rises to 3.1% in April

Annual inflation continues to rise, climbing from 2.4% in March to 3.1% in April. The energy component accounts for 42% of inflation, following a surge in fuel and heating oil prices. 

Chart 1: Annual inflation rate and contributions

Source: STATEC

The repercussions of the war in Iran continue to exert significant pressure on energy prices in Luxembourg. The aggregate rises by 9.1% compared with March and by 17.7% year on year. As was already the case in March, the increase is particularly pronounced for heating oil, whose prices jump by 23.0% over one month and by 75.5% on an annual basis. After a strong monthly increase of 15.6% in March, fuels record a further rise of 11.1% in April. Over one year, fuel prices increase by 28.8%. The price per liter of diesel thus rises by 15.1% in one month, and that of gasoline by 8.1%. By contrast, gas and electricity prices remain unchanged in April.

The food aggregate (including alcohol and tobacco) shows an annual increase of 2.6% compared with April 2025. Certain subcomponents stand out: chocolate (+9.3% year on year), fresh meat (+7.0%), and coffee (+8.7%). Conversely, the prices of vegetable oil (−4.7%) and pasta (−4.2%) decline. Alcoholic beverages increase by 1.5% over one month, with marked rises for wine (+2.1%) as well as spirits and liqueurs (+1.6%). In contrast, the price of beer decreases by 0.3% compared with the previous month. On an annual basis, alcoholic beverages rise by 1.1%.

Services increase by 2.3% year on year, compared with 2.5% in March. This slowdown is mainly due to declining prices for package holidays and airline tickets on an annual basis, as well as a decrease related to financial services. Increases were observed for childcare facilities and after‑school care centers, as well as for the restaurant sector (+0.7% over one month and +3.6% year on year).

The aggregate for non‑energy industrial goods shows the lowest annual increase (+1.0%). The strongest annual change was recorded for water supply, which rises by 10.4% year on year. Price increases were also noted for books (+3.7% over one month). On the other hand, price decreases were recorded for plants and flowers, which fall by 3.1% compared with March, and for small household appliances (−2.6%).

Table 1: Price changes for the four main IPCN aggregates

Source: STATEC

The annual inflation rate rises to 3.1% in April, compared with 2.4% in March. The overall index excluding energy declines from 2.1% to 1.9%. The overall index for April, expressed on a 2025 base of 100, stands at 102.65 points.

The six‑month average of the index linked to the base of 1 January 1948 increases from 1,035.12 to 1,038.35 points. The next wage indexation will be triggered when the value of 1038.79 is reached, i.e. when 2.5% inflation has accumulated since the last indexation. To date, 2.46 percentage points of inflation have accumulated.STATEC will publish a first estimate of the annual inflation rate for May on 29 May and will confirm, if applicable, the triggering of this next index tranche.

TABLE 2: Price changes in the 13 divisions of the IPCN

Source: STATEC

Chart 2: Evolution of the Price Index and Inflation in Luxembourg

The chart shows the parallel evolution of the price index (yellow line) and the annual inflation rate (blue line) in Luxembourg since 2016. The horizontal lines indicate the various index thresholds corresponding to index tranche levels. The index gradually moves towards the current threshold, while inflation fluctuations explain periods of faster or slower progression.

The results of the index for May 2026 will be published on 3 June 2026, following the monthly meeting of the Index Commission. A first estimate of the annual inflation rate will be published on 29 May 2026.