On Monday, 8 July, Statec reported a 0.1% increase in consumer prices from May to June, resulting in a slight decrease in annual inflation from 2.6% to 2.2%.
Despite this, prices continue to rise, indicating that Luxembourg’s next indexation is expected between October and December this year, assuming Statec’s forecasts hold true. This adjustment period is projected to raise salaries, pensions, and retirement benefits by approximately 2.5%.
Since the index trigger threshold was last crossed in August 2023, it has continued to progress. Last year, it was activated on 1 September after surpassing the 988.75 mark. The next trigger is likely to occur at 1013.46. As of June 2024, the index stood at 1006.97
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According to Statec, the prices of fuel products experienced a reduction during the month of June. Petrol dropped by 3.2%, diesel by 1.4% and 2.1% for heating oil.
Food prices have followed a similar trend. Fresh fruit in particular dropped in price by 2.6%, baby food by 3.9% and cheese by 0.7%. However, other products saw increases, such as olive oil (+4.1%), crisps (+3.2%) and fresh seafood (+3.2%).
Unsurprisingly, with summer holidays looming, Statec noted an increase in prices for package holidays (+10.9%) and a decrease in crèches and after-school childcare (-1.3%), as well as air transport (-12.8%).
