September 2024 saw euro area inflation fall to 1.8%, its lowest level since June 2021, while Luxembourg’s national inflation rate reached 1.3%, also its lowest in more than three years. Photo: Shutterstock

September 2024 saw euro area inflation fall to 1.8%, its lowest level since June 2021, while Luxembourg’s national inflation rate reached 1.3%, also its lowest in more than three years. Photo: Shutterstock

Euro area inflation fell to 1.8% in September 2024, according to Eurostat estimates. In Luxembourg, the national consumer price index was provisionally recorded at 1.3%, the lowest rate since February 2021, data from Statec shows. At these levels, wage indexation is not expected to occur in 2024.

According to Eurostat’s flash estimate, published on Tuesday 1 October 2024, September saw the mildest annual price increase in the euro area, with inflation at 1.8%. This is the lowest rate since June 2021 and marks the first time in three years that inflation has fallen below the European Central Bank’s 2% medium-term target.

In Luxembourg, Statec, the grand duchy’s statistics bureau, has provisionally estimated a 1.3% rise in national consumer prices for September 2024--the lowest rate since February 2021. By comparison, Eurostat’s flash estimate for Luxembourg’s harmonised index of consumer prices (HICP) stands at 0.8%.

Statec’s national consumer price index (NICP), which is also used to determine wage indexation, indicates that if inflation remains at current levels, there will be no wage indexation in 2024. However, if the NICP rises to 1.8% or higher in October, wage indexation could be triggered in November 2024. Statec previously projected a possible wage indexation in the last quarter of 2024, depending on inflation trends.

Statec is set to release the official September inflation figures for Luxembourg on Monday 7 October 2024.

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