Inflation forecast: 3.8% for 2023 and 2.6% for 2024

Within a year, the inflation rate has halved, and the European Central Bank's medium-term inflation target of 2% could once again be reached in Luxembourg. As an annual average, inflation should reach 3.8% in 2023 and 2.6% in 2024. The next indexation is scheduled for the 3rd quarter of 2024.

In October 2023, annual inflation in Luxembourg reached its lowest level in two years, at 3.2%. Behind this apparent slowdown, oil prices and underlying inflation are following opposite trends. Since February, oil products have been contributing to the fall in the general inflation rate, notably through negative base effects. However, the price of Brent crude has been rising since the summer. As a result, oil products should once again contribute to the rise in annual inflation in the first half of 2024.