Annual inflation rate for June stands at 2.2%

Annual inflation in June remained close to the figure recorded the previous month, standing at 2.2%, compared with 2.3% in May. However, this apparent stability masks contrasting trends: whilst the contribution from energy fell year-on-year, that from services rose, mainly as a result of the wage indexation that took effect on 1 June. 

Chart 1: Annual inflation rate and contributions

Source: STATEC

In June 2026, energy prices in Luxembourg remained 16.0% higher than their level in June 2025, whilst continuing their recent downward trend, with a fall of 6.5% compared with the previous month. The fall observed in June is largely due to the trend in the price of heating oil, which fell by 11.0% month-on-month, despite remaining 38.5% higher than in June 2025. Motor fuels followed a similar trend: their prices fell by 6.7% month-on-month, but remained 18.7% higher year-on-year. The price per litre of diesel fell by 7.6% compared with May, whilst the price of petrol fell by 6.0%. By contrast, gas and electricity prices remained unchanged in June. 

The food aggregate (including alcohol and tobacco) shows a year-on-year increase of 1.4% compared with June 2025. Certain sub-categories stand out: fruit and vegetables (+11.1% year-on-year), chocolate (+7.2%) and fresh meat (+5.0%). By contrast, alcoholic drinks recorded a monthly fall of 1.6%, driven in particular by a drop in the price of beer due to promotional offers (-3.8%) and wine (-0.7%).

Prices for services rose by 2.5% year-on-year, compared with 1.3% the previous month. This increase is mainly due to the effect of wage indexation in June. Fees for care homes and nursing homes rose by 5.1% over the month. Furthermore, significant increases were observed in the prices of housing maintenance and repair services (+2.5%), domestic services (+2.5%), home care services (+1.4%), and car maintenance and repair (+1.1%).

Furthermore, the pricing of medical and dental services is automatically linked to wage indexation. Monthly price rises with a noticeable impact on June’s figures were also recorded for hairdressing salons (+1.7%) and the catering sector (+0.6%).

Seasonal fluctuations were observed in the prices of package holidays (+6.6%) and in the fees for nurseries and after-school care centres (+7.1%), whilst airfares fell by 9.7% month-on-month and by 4.6% year-on-year. Promotions contributed to the fall in telecommunications package deals, which were down 8.2% compared with May.

The aggregate for non-energy industrial goods recorded a slight increase of 0.6% year-on-year and 0.1% month-on-month. The sharpest monthly change was seen for furniture, which rose by 1.1% compared with May.

Table 1: Price changes for the four main IPCN aggregates

Source: STATEC

After reaching 2.3% in May, the annual inflation rate fell slightly to 2.2% in June. However, this trend masks a resurgence in inflationary pressures in the overall index excluding energy, which rose from 1.2% to 1.7% year-on-year. The all-items index for June, expressed on a base of 100 in 2025, stands at 102.54 points. The half-yearly average of the index, linked to the base date of 1 January 1948, rose from 1,041.62 to 1,044.80 points. The next indexation will be triggered when the value of 1,064.75 is reached.

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 July 2026 index will be published on 5 August 2026, following the Index Committee’s monthly meeting. A preliminary estimate of the annual inflation rate will be published on 31 July 2026.