News•Careers• 28.10.2020 • Nicolas Léonard & Delano staff
With inflation remaining relatively low in Luxembourg, there will not be an automatic cost of living increase next year, Statec has said.
There will be no indexation before 2022, according to a recent Statec forecast. The health crisis has slowed inflation.
Indexation, also known as the index, is the automatic rise in salaries and pensions meant to keep pace with the increased cost of living. Statec, the national statistics bureau, has told parliament’s finance and budget committee the next round will not take place prior to 2022.
Inflation has been low during the covid-19 pandemic: 0.2% in the third quarter of the year. The bureau said it should only be 1.3% in 2021.
The cost of living index is based on a basket of goods; the introduction of free public transport and falling fuel prices has slowed the overall inflation rate. However, Statec said the cost of household goods could still increase.
The last index took effect on 1 January 2020.
Originally published in French by Paperjam and translated for Delano