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Middle East war throws wage indexation debate into sharp focus

10.04.2026 - Luxembourg Times

In the press

With a new index adjustment looming, positions remain deeply divided over the impact on purchasing power, competitiveness and fears of stagflation.

According to forecasts by Luxembourg’s official statistics agency Statec, the next automatic wage indexation - triggered by inflation reaching 2.5% - is expected in the second quarter of 2026. The subsequent increase in wages and pensions by 2.5% on 1 May or 1 June will reignite familiar arguments.

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