The third indexation will still take place in September

There will be a third wage indexation this year. This was reported by Statec with reference to the indicators of forecast inflation. According to the law, wages and pensions will be indexed if the sustainable inflation exceeds 2.5%. The new rates are expected as early as September 1.

The first two tranches took place on February 1 and April 1. They were part of the agreements reached in last year's tripartite meetings. The upcoming one could have been postponed until October if price growth in the Grand Duchy had slowed a little. But that has not happened.

And while wage and pension increases look promising, it should be remembered that these indexations have twice led to a rise in inflation. A particularly worrying trend is emerging in the food sector.

It is clear that wage indexation should be only one of the methods to fight for the purchasing power of households, but by no means the only one.