Inflation slows further in Luxembourg, pushing back the next wage indexation to 2025, according to a new report by STATEC.

The National Institute of Statistics and Economic Studies (STATEC) has reported a further decline in Luxembourg's annual inflation rate for November, delaying the next wage indexation. According to the latest data, the inflation rate dropped from 1.0% to 0.8% on a monthly basis, standing at 1.6% annually.

As STATEC's new director Tom Haas predicted earlier in November, "The next wage indexation will only be triggered next year." This outlook was reiterated in the report, which highlighted that the persistently low inflation rate is postponing the adjustment. A detailed analysis is set to be published on 20 December.

STATEC attributed the drop in inflation to reduced travel costs and lower gas prices, which fell by 7.2% in November. "Travellers are paying 12.6% less for holidays compared to the previous month, while airfares have decreased by 14.5% since October and are 3.9% lower compared to November 2023," the institute noted.

Wage indexations in Luxembourg are triggered when the half-yearly average of the consumer price index rises by 2.5% compared to the last adjustment. These increases are designed to offset inflation and preserve purchasing power, which STATEC says has continued to grow despite a challenging economic environment.

Recent wage indexation dates

  • 1 September 2023
  • 1 April 2023 (deferred from July 2022)
  • 1 February 2023
  • 1 April 2022
  • 1 October 2021