The National Institute of Statistics and Economic Studies (STATEC) has recently released updated economic forecasts for Luxembourg.

According to their latest report, inflation in the country is projected to average 3.8% in 2023, with a slight decrease to 2.6% anticipated for 2024.

Over the course of one year, the inflation rate has been reduced by half. This positive trend raises the possibility that Luxembourg could once again align with the European Central Bank's medium-term inflation target of 2% within the same timeframe.

As a result, the next wage indexation is scheduled for the third quarter of 2024.

RTL

However, it is important to note that service prices are still on the rise, contributing to underlying inflation in the Grand Duchy. The three wage indexations disbursed in February, April, and September of 2023 have contributed to the increase in service prices, with the highest annual inflation recorded at 3.7% in October.

Despite this, Luxembourg's overall inflation rate is lower than that of the Eurozone due to the fact that some services are offered free of charge in the Grand Duchy.