The annual inflation rate in Luxembourg edged up to 2.3% in July 2025 from 2.2% in the previous month, marking the highest level since May 2024. The uptick was primarily driven by faster price increases in food and non-alcoholic beverages (2.6% vs 2.2% in June), recreation and culture (3.6% vs 2.2%), household goods and maintenance (0.9% vs 0.3%), and restaurants and hotels (2.8% vs 2.2%). In addition, a slower price decline in communication (-1.6% vs -4.6%) also contributed. However, these increases were partially offset by slower price growth in housing and utilities (5.3% vs 5.7%), miscellaneous goods and services (2.3% vs 2.4%), transport (0.3% vs 1.0%), alongside a shift to a price decline in clothing and footwear (-1.9% vs 0.9%). On a monthly basis, consumer prices declined by 0.53% in July, reversing from a 0.13% gain in June and snapping a three-month streak of increases.