Luxembourg’s next wage indexation is expected in the second quarter of 2025, according to a new report from STATEC. The forecast comes as annual inflation edged down from 1.9% to 1.7%, despite a notable rise in consumer prices in February.

In its latest report, published on Wednesday, the National Institute of Statistics and Economic Studies (STATEC) projected that the next wage indexation in Luxembourg will be triggered in the second quarter of 2025. This comes as the annual inflation rate declined slightly, dropping from 1.9% to 1.7%.

In February 2024, the national consumer price index rose by 1.2% compared to the previous month. This increase was primarily driven by seasonal factors, including the end of winter sales, which impacted several categories. Notably, clothing and footwear saw a significant rise of 15.5%, while leisure and culture increased by 4.0%, and furniture, household goods, and routine home maintenance rose by 1.0%.

Additionally, the prices of plants and flowers surged by approximately 7% in February, reflecting increased demand around Valentine's Day.