The annual inflation rate in Luxembourg rose to 2.4% in August 2025 from 2.3% in the previous month. The latest figure marked the highest reading since May last year, mainly driven by higher prices of clothing and footwear (0.5% vs -1.9% in July), health (1.3% vs 0.8%), and transport (1% vs 0.3%). Additionally, costs declined at a softer pace for communication (-0.6% vs -1.6%). Conversely, inflation moderated for alcoholic beverages and tobacco (2.2% vs 2.3%), while prices tumbled for furnishing, household equipment and maintenance (-0.2% vs 0.9%). On a monthly basis, consumer prices increased by 1.3% in August, the highest since February 2024 and rebounding from a 0.5% drop in the preceding period.