Are groceries more expensive in Luxembourg compared to the rest of Europe?

In response to a parliamentary question by LSAP MP Mars di Bartolomeo, the Minister of the Economy, Etienne Schneider, drew on some recent Eurostat figures.

As previously reported, bread is on average 27% more expensive in the Grand Duchy than in the rest of the European Union.

Meat is 41.5% more expensive on average in Luxembourg, and fish is 19% more expensive than the European average. However, alcohol and tobacco are considerably cheaper in the Grand Duchy than elsewhere, apart from Germany, where wine prices are even cheaper.

In comparison to its neighbouring countries, Luxembourg is just a little more expensive overall. Hygiene products and perfumes are cheaper here than in Belgium, France or Germany, and drinks are also cheaper.

The Eurostat report does not go into detail regarding the causes of the higher prices, said the Minister. The studies do not take into account average salaries, taxes and rent rates, all important factors which can contribute to overall prices.

The Minister's response also highlighted the issues some Luxembourg business face when sourcing products within the EU market, due to territorial supply constraints. It also pointed out that the Luxembourg retail market faces direct competition from neighbouring countries, as the average Luxembourg consumer can choose to look elsewhere for products, putting Luxembourg businesses at a disadvantage in terms of distribution.

A survey aimed at entrepreneurs in the Benelux countries has explored the phenomenon in more detail, and as a result, the European Commission has launched a study for a thorough review of territorial supply restrictions.

For further reading, read this on what not to buy in Luxembourg.