The drop in oil prices, combined with measures negotiated during the tripartite talks, is expected to curb inflation in Luxembourg. However, the date of the next wage indexation remains unchanged, according to a new analysis from the National Institute of Statistics and Economic Studies (STATEC).
In a document published on Wednesday, 24 June, STATEC examined the latest economic developments for Luxembourg. Its experts concluded that the tripartite measures, together with easing tensions around the Strait of Hormuz, will help stabilise price rises at around 2.2% for 2026. The price of a barrel of oil has indeed been falling.
At this stage, the government's measures will not affect the triggering of the wage indexation scheduled for 2027. While the tripartite negotiations have helped reduce a potential rebound in inflation, they will not bring forward the date of the next indexation.
Following the indexation triggered in June, the next wage adjustment is still scheduled for the second quarter of 2027 – in the spring, as previously planned.
Between now and then, several elements of the "resilience package" are set to come into force to ease the financial burden on Luxembourg residents. These include the economic tax credit, energy price discounts, and an uprating of the minimum wage scheduled for 1 January 2027.
