There will be no indexation until 2025
Mathieu Stern, Unsplash
According to Statec, in Luxembourg, as in the whole euro area, prices fell by around 0.4% between August and September 2024. This was mainly due to the second consecutive month of falling oil prices, with petroleum product prices falling by 4.3% during the month, diesel by 4.4%, petrol by 5.4%, and heating oil by 8.5%. Overall, prices are 14.9% lower compared to September 2023.
By the end of the season, other prices also fell, such as plane tickets (by 20.1%) and tour packages (by 10.1%). Food prices increased by 0.2% between August and September: fruit rose by 4.4% and vegetables by 2.3%. Fish and chocolate, however, became cheaper (by 2.9% and 3.5% respectively). Over the year, the cost of food increased by 1.5%.
The inflation rate fell from 1.7% to 1.3%. And although the six-month average index rate (which usually serves as the starting point for wage indexation) is almost reached, Statec says it is "unlikely" to be reached next month. The annual inflation rate is forecast to exceed 1.63% again in October and November 2024.
Accordingly, workers will probably have to wait until 2025 to see their pay automatically increase by 2.5%.
