Luxembourg's food prices rise at slower rate than European neighbours

While Luxembourg has not experienced food inflation to the same extent as other European nations, it is uncertain whether this positive trend will continue. According to a report released by the National Institute of Statistics and Economic Studies (STATEC) on 30 April, food inflation is showing a "moderate" trend.

From January 2022 to March 2024, food prices experienced a 19% increase. While this indicates a surge, it is notably lower than the inflation rates observed in neighbouring countries. During the same period, inflation reached +22.3% in the eurozone, over 20% in France, approximately 25% in Germany, and even higher in Belgium.

© Statec

While the recent developments offer a glimmer of hope, Luxembourg is still not completely out of the woods, with new data suggesting that the Grand Duchy has fallen behind in recent weeks, according to the STATEC: "Overall, food inflation has been decelerating across Europe, with Luxembourg, Belgium, and the Netherlands being the only exceptions where it has slightly increased in recent months."

In March, food inflation in Luxembourg recorded a year-over-year increase of 3.2%.

Foodstuffs: where is Luxembourg at?

The STATEC confirms that while prices for certain products have "begun to decrease", such as those for flour, milk, fresh vegetables, and honey, others continue to rise. Among those on the upward trend are olive oil, chocolate, and other sugar- or cocoa-based products, as well as fortified wines.

"This trend is mirrored in the rest of Europe," explain STATEC officials, noting a significant drop in cereal prices contrasted with a surge in cocoa prices. Despite these fluctuations, the statistics institute maintains its forecasts, anticipating that inflation will trigger the next indexation at the end of the year.