Inflation in Luxembourg has fallen to its lowest level in over three years, with October's rate dropping to just 1%, according to the National Institute of Statistics and Economic Studies.
Luxembourg's inflation rate dropped to 1% in October, marking its lowest level in over three and a half years, according to the National Institute of Statistics and Economic Studies (STATEC). This decrease brings the annual inflation rate down to 2.1%, a shift from the 2.3% projection made by STATEC in August.
Looking ahead, STATEC anticipates a slight inflation increase in 2025, driven in part by the end of current energy price caps. The institute's latest forecast projects a 2.5% inflation rate for 2025, lower than earlier predictions.
STATEC's new director, Tom Haas, recently stated on RTL Radio that the next wage indexation is likely to occur in 2025. Two scenarios are currently under consideration: if energy prices rise moderately, a single wage indexation could take place in the second quarter. However, if energy costs increase more rapidly, wage indexation may happen as early as the first quarter, followed by a second indexation in the third quarter.
