Prime Minister Luc Frieden addressed this during a session in the Chamber of Deputies, responding to a question by MP Sam Tanson of the Green Party (déi gréng). Tanson enquired about the impact of energy price cap removal on inflation and wage indexation.
Most energy price caps are set to expire by the year’s end, with the exception of electricity, where the government plans to offset 50% of the anticipated consumer price increase.
Frieden acknowledged the complexity of predicting wage indexation triggers, citing factors such as economic trends, geopolitical events, and the European Central Bank’s monetary policies. Nevertheless, he stated that the National Institute of Statistics and Economic Studies (STATEC) currently anticipates next year’s wage indexation to occur at the end of 2025.
Earlier projections by STATEC in May indicated potential wage indexations by the end of 2024 and in Q3 2025, contingent on the removal of all energy price caps. STATEC forecasts a 60% increase in electricity prices and a 17% rise in gas prices for 2025.
