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The forecast was made in the November “Conjoncture Flash” published by Statec on 29 November.

The report reads:

“At the beginning of November, Statec revised down its inflation forecast for Luxembourg and now expects a 1.7% increase for 2019 and 1.6% for 2020.

According to the Flash estimate of the price index for November (published 20 November) the quarterly average does not exceed the threshold value for triggering the next index segment.”

Indexation is a mechanism used to maintain public purchasing power after inflation.

In November, the index value was at 873.93, but must reach 873.94 to trigger an indexation or compulsory increase of salaries and pensions.

The last indexation occurred in Luxembourg was in August 2018.