About this Episode
STATEC says households face continued price pressure from rising energy costs through at least the third quarter of 2026. The ongoing conflict in West Asia has driven oil and gas prices significantly higher, affecting inflation forecasts both locally and across Europe. STATEC outlined various inflation scenarios, predicting rates between 2.3% and 4% for this year, which could trigger at least two wage indexations, with the first likely occurring in June.
Prime Minister Luc Frieden has announced that the government will finalize the agenda for an upcoming tripartite meeting this week, after discussions with social partners. The meeting comes as tensions rise over various issues, particularly the energy crisis. While trade unions advocate for a broad agenda, employers and the civil service union have suggested a narrower focus.
The Luxembourg Socialist Workers’ Party (LSAP) is pushing for significant reforms in the labour sector. They’re asking for a reduction of the workweek to 38 hours, additional vacation days, and a €200 increase in the minimum wage.
