Luxembourg's Inflation Rate Soars to 4% Amid Energy Costs Surge

Luxembourg's inflation rate soared to 4% in August, marking a sharp acceleration after three months of cooling price rises, according to Eurostat. The data confirms provisional figures published at the start of the month by the EU's official statistics agency.

The annual rate is significantly higher than the 2.8% recorded a year ago and remains well above the eurozone average of 3.2%. Inflation was lower in neighboring countries, including Germany (2.9%), France (2.6%), and the Netherlands (2.8%), while only Belgium posted a higher rate at 4.2%.

The increase was largely driven by energy costs, with energy inflation in the eurozone surging to 14.3% in August, up from 10.3% in July. This makes energy the biggest contributor to headline inflation.

Among EU member states, Romania recorded the highest inflation rate at 6.3%, followed by Lithuania at 5.6% and Cyprus at 5.2%. Sweden had the lowest rate at just 0.3%.