The Consumer Price Index, or CPI, is the official measurement of Luxembourg’s monthly inflation, and triggers index tranches when inflation passes 2.5%. This allows wages and pensions to automatically be adjusted to the real cost of living.
This year, however, the CPI has been calculated differently, according to a statement issued by Statec this week, in order to “better reflect actual household consumption habits”.
The composition of the basket of goods and services used to make these calculations has been modified, and will henceforth include 13 categories of consumption, compared to 12 previously.
In the future, energy costs and grocery prices will carry more weight. These costs “are rising more rapidly and taking up a larger proportion than services in household budgets,” said Statec.
In comparison, services such as catering, transport, healthcare and personal services are having less impact on household budgets.
Among the new items included in Statec’s basket are at-home care services, gambling, delivery costs, subscriptions to streaming platforms, and recharging electric vehicles at home.
