Today Statec published its latest inflation forecasts for 2023 and 2024. Inflation is expected to reach 3.4% in 2023 and 4.8% in 2024.
Statec's calculations also show that a second index tranche would be triggered in the fourth quarter of 2023, after the one on 1 February 2023 and in addition to the one postponed from June 2022 to April 2023; that a suspension of the measures provided for in the Tripartite Coordination Committee agreement signed on 28 September 2022 and ending on 31 December 2023 would risk causing an inflationary shock at the beginning of 2024. The good inflation performance in 2023 underlines the effectiveness of these measures on the inflation rate, a phenomenon that is also evident in a direct comparison with the other members of the eurozone.
In the light of these economic developments and in accordance with the agreement of the Tripartite Coordination Committee, known as Solidaritéitspak 2.0, the Prime Minister, Minister of State Xavier Bettel, will convene a new meeting of the Tripartite Coordination Committee in the coming weeks to discuss the following two points:
- The agreement of the Tripartite Coordination Committee of 28 September 2022 stipulates that if, in the course of 2023, the Statec determines that an end to the measures would lead to an inflationary shock at the beginning of 2024, the government undertakes to convene a new meeting of the Tripartite Coordination Committee to examine and organise a possible phasing-out of the measures.
- The government will use this meeting of the Tripartite Coordination Committee to discuss with the social partners the modalities of the compensation of the probable additional index bracket, which will be applied entirely to the benefit of private households.
The government remains fully committed to supporting the purchasing power of households and the competitiveness of businesses through the instrument of social dialogue.
Press release by the Ministry of State