Threshold exceeded, but indexation deferred

According to the provisional result published by STATEC, the annual inflation rate of the National Consumer Price Index (NCPI) for June was 7.4%. With this result, the half-yearly average of the index connected to the 1.1.1948 base for June exceeds the threshold of 941.12 points.

Under Article 3 of the law of June 29, 2022, the indexation of salaries, wages and pensions will take place on 1 April 2023.

Articles 4 to 6 of the law of June 29, 2022 create a sliding scale of family allowances (EMAF), which adjust the amounts of family allowances to the cost of living. In accordance with current legislation, the adjustment of family allowances takes place the month following its triggering. Therefore, the EMAF application rate of 898.93 points (former rate: 877.01 points) comes into effect on July 1, 2022, resulting in a 2.5% increase in family allowances on that date.

The final and detailed results of the National Consumer Price Index for June will be published on July 6, 2022, after the monthly meeting of the Index Commission.