Knowing that Luxembourg has the highest price levels in all of the EU is certainly useful to know, but knowing what categories experience the highest prices is even more useful, some would say.

Yesterday, we reported that Luxembourg has the highest price levels in the entire European Union, and by a wide margin. In this article translated from our colleagues over at 5Minutes, we break down which goods and services are the most expensive - and more expensive than in other countries- in the Grand Duchy. We've also got a nifty tool at the bottom of the article to show the different categories.

What not to buy in Luxembourg

The main category that Luxembourg excels in when it comes to high prices is the category of furniture and carpets. In this category, Luxembourg has a price level indice of 120.6, which is a whopping 20.6% above the European average.

Whilst Iceland, which is a member of the European Free Trade Association (EFTA), has a reputation for its exorbitant prices, Luxembourg has surpassed the country in this category.

As for food products (bread, cereals, meat, milk, etc...), Denmark is the only EU country to dethrone Luxembourgish prices (126.9). Again, the countries surpassing the most expensive countries of the EU are the EFTA members, with Switzerland having the most expensive food products (163.6), followed by Norway and Iceland.

Clothing and shoes are also considered relatively expensive in Luxembourg, which still has higher price levels than the European average in this category, although only by 8.9%. However, Luxembourg does appear to have a lower price level indice than neighbouring France in this domain.

© Pixabay

Next up is that open secret, which is that eating out at restaurants and staying in hotels is not cheap in Luxembourg (112.5). Surprisingly, both Belgium and France had higher price levels than Luxembourg, which was ranked eighth in terms of the costs of this category.

As for the communications and internet categories, both are considered more expensive in Luxembourg (113.4) than in France or Germany, but the Luxembourgish price levels are below those of Belgium (140.4) and Portugal (119.7).

When it comes to recreation and culture, Luxembourg is one of the top five most expensive European countries, with a price level indice which is 13.3% higher than the European average.

Finally, cars, motorbikes, and everything else covered by the personal transport category are just slightly more expensive in Luxembourg than the European average. Portugal, France, and Belgium, on the other hand, are amongst the cheapest European countries for personal transport.

Cheap as chips in Luxembourg

In what is perhaps the most unsurprising news ever, alcohol and cigarettes are much cheaper in the Grand Duchy (90.2) than in neighbouring countries and than the European average. Perhaps that's why people tend to come to Luxembourg to stock up on tobacco and alcohol, hmm?


Next up in the cheap category is another easy guess, namely the already very affordable public transport, which is due to become free as of March 2020. Interestingly, the statistics for the category include buses and trains, but also planes. Luxembourg's price levels for the category consequently find themselves 30% below the European average.

And the housing bubble?

© Unsplash

Finally, despite the fact that housing has become highly unaffordable over the past few years, Luxembourg is only third in terms of the EU's highest houses prices at 155.8. The countries ahead of Luxembourg are the United Kingdom and Ireland, and finally EFTA-member Switzerland (173.9).

Compare it yourself

Choose whichever country you like and compare the prices in different categories with Eurostat's handy tool.