Statec's latest report on the cost of living in Luxembourg reveals that consumer prices continued to rise in October. Consequently, the threshold triggering the next salary indexation has almost been reached.

Whilst the annual inflation rate has dropped slightly, prices continue to increase in Luxembourg. In order to keep up with the rising cost of living, the next salary indexation is not far.

Statec calculated that the inflation index has grown from 872.80 to 873.50. Salary indexations occur once the index reaches 873.94. It is clear that the inflation index is but a hair's breadth away from this threshold and is very likely that salaries will be adapted between now and the end of the year. Once the threshold is reached, salaries and pensions will be revised at a plus of 2.5%.

The statistics service described consumer prices as 'undynamic' in October, noting that travel prices dropped (-4.1%) alongside food (-0.3%) and smartphones (-5.3%). However, both alcoholic drinks and tobacco rose in price (+2.06%), as did clothing (+1.22%) and rent (+0.5%).