Luxembourg: cost of living

How expensive is Luxembourg compared with the rest of the EU?

Prices for household consumption in Luxembourg were 32.8% above the EU average in 2024 (price level index 132.8, EU = 100), according to Eurostat. The gap was largest for housing, water, electricity, gas and other fuels, at 178.4. Transport (96.4) and alcoholic drinks and tobacco (94.0) were slightly below the EU average.

Price level indices compare prices only, not incomes, so they do not show how affordable the country is for people living there. Housing weighs heavily in budgets: households spend 19.9% of their expenditure on housing, energy and water, according to STATEC. Eurostat's figures were last updated in July 2025.

Official sources: Eurostat: price level indices, Luxembourg · STATEC: Luxembourg in Figures 2026

How expensive is food in Luxembourg?

Food and non-alcoholic drinks in Luxembourg cost 24.8% more than the EU average in 2024 (price level index 124.8, EU = 100), according to Eurostat. Meat was the most expensive group, at 137.0, and bread and cereals were at 129.1. Restaurants and hotels were 23.6% above the EU average.

Food prices, including alcoholic drinks and tobacco, rose 1.8% in the year to September 2026, according to STATEC. Fruiting vegetables such as tomatoes and peppers rose 20.8%, while pasta fell 4.7%. STATEC's Luxembourg in Figures 2026 puts average household spending on food and non-alcoholic drinks at EUR 7,035 in 2025.

Official sources: Eurostat: price level indices, Luxembourg · STATEC: Annual inflation rises to 2.9% in September · STATEC: Luxembourg in Figures 2026 (PDF)

How much does a household spend per month in Luxembourg?

Households in Luxembourg spent an average of EUR 89,997 in 2025, or about EUR 7,500 a month, according to Luxembourg in Figures 2026 from STATEC. Spending on food and non-alcoholic drinks averaged EUR 7,035 a year. Nearly a fifth of household expenditure (19.9%) goes on housing, energy and water, according to STATEC.

These are averages across all 265,000 households, so they mix single people with large families and low with high incomes. Average spending rose from EUR 66,104 in 2021. The figures show what households actually spent, not a minimum budget for living in the country.

Official sources: STATEC: Luxembourg in Figures 2026 (PDF) · STATEC: Luxembourg in Figures 2026

What is the poverty line in Luxembourg?

Luxembourg's at-risk-of-poverty threshold was EUR 2,502 a month in 2025, according to Luxembourg in Figures 2026 from STATEC. 14.8% of the population lived below it, down from 18.1% in 2024. Median disposable income was EUR 4,170 a month per adult-equivalent.

The threshold is a relative measure linked to median income, so it moves as incomes change. STATEC marks 2025 with a break in series, which means the fall from 2024 should be read with caution.

Official sources: STATEC: Luxembourg in Figures 2026 (PDF)

How much does electricity cost in Luxembourg?

Households in Luxembourg paid EUR 0.2023 per kilowatt-hour for electricity in the first half of 2026, including taxes, for annual consumption of 2,500 to 4,999 kWh, according to Eurostat. That was down from EUR 0.2665 in both halves of 2025.

The figure is for a typical household band and includes taxes and levies, so actual bills depend on usage and contract. In the consumer price index, gas and electricity prices were unchanged in September 2026 while heating oil and motor fuels rose sharply, according to STATEC. Eurostat publishes household energy prices twice a year.

Official sources: STATEC: Annual inflation rises to 2.9% in September

How fast are prices rising in Luxembourg?

According to the IMF, consumer price inflation in Luxembourg was 2.3% in 2025. Its high point since 2005 was 2022, at 6.3%; its low point was 2016, at 0.3%. It is 38th highest of 48 in Europe & Central Asia, where the median is 3.7%. Worldwide: 103rd of 165.

What is household spending per person in Luxembourg?

In 2025, household consumption per person in Luxembourg was $38,321, according to the World Bank. It is the top of the series, which starts in 2005. It is 3rd highest of 44 in Europe & Central Asia, where the median is $11,266. Of 124 countries with 2025 data, 3rd highest.

What share of people in Luxembourg live in extreme poverty?

The World Bank puts the share of people living on less than $3.00 a day in Luxembourg at 0.1% in 2023. Its high point since 2005 was 2015, at 0.3%; its low point was 2005, at 0.0%. Across Europe & Central Asia the middle value was 0.4%, and Luxembourg placed 25th highest of 34. Worldwide: 49th of 59.

What is the poverty rate in Luxembourg?

In 2021, the share of people below the national poverty line in Luxembourg was 17.3%, according to the World Bank. Across Europe & Central Asia the middle value was 15.9%, and Luxembourg placed 17th highest of 40. Of 72 countries with 2021 data, 42nd highest.

What is income inequality in Luxembourg?

In 2023, the Gini index in Luxembourg was 33.6, according to the World Bank. The peak was 35.4 in 2018 and the low 30.5 in 2010. It is 10th highest of 34 in Europe & Central Asia, where the median is 31.5. Of 59 countries with 2023 data, 30th highest.

How many people in Luxembourg go hungry?

In 2024, moderate or severe food insecurity in Luxembourg was 2.6%, according to the FAO. It is the bottom of the series, which starts in 2015. It is 39th highest of 45 in Europe & Central Asia, where the median is 7.6%. Of 135 countries with 2024 data, 129th highest.