We should not expect wage indexation in Luxembourg any time soon
Willfried Wende, Unsplash
According to STATEC, the consumer price index (CPI) in Luxembourg decreased by 0.5% in November 2024. This decrease is due to the cheapening of fuel, gas and tourist services, which against the background of low inflation contributes to the delay of the next indexation of wages.
The drop in prices for petroleum products continues for the fourth month in a row. Gas prices fell by 7.2% compared to October, while petrol prices fell by 1.2%. At the same time, the price of diesel rose by 1%, while heating oil - by 0.3%. Compared to November 2023, petroleum products fell in price by an impressive 12.6%.
Prices for package tours decreased by 12.6% compared to October, while air tickets became cheaper by 14.5%. However, compared to last year, package tours rose in price by 11.1%, despite a 3.9% decrease in the price of tickets.
Food prices decreased by 0.5%. Potatoes (-2.8%), rice (-3.3%) and poultry meat (-1.3%) fell in price. However, frozen fish (+2.9%) and baby food (+3.1%) became more expensive. Alcoholic beverages in general became cheaper by 5.7%, and mineral water - by 2.1%.
Rates for nurseries and children's centres decreased by 3.2%, but car repairs (+0.5%) and mobile communications (+2.2%) rose in price. Among goods, price growth was recorded for women's shoes (+4.7%) and bicycles (+3.6%), and a noticeable decrease for cameras (-7.6%) and household appliances (-1.5%).
The annual inflation rate fell from 1.0% in October to 0.8% in November. This postponed near-term wage indexation as the average CPI did not reach the required level. The impact of low inflation is likely to continue in the coming months, with new forecasts due on 20 December.
