Andorra December CPI Eases to 2.7% YoY, Boosting Minimum Wage Hike

Andorra's preliminary consumer price index for December eased to a year-on-year rate of 2.7%, the Department of Statistics reported Friday in its advance indicator, which covers 99% of required data.

This represents a 0.1 percentage point drop from November's 2.8%, even though December is typically the year's most inflationary month. The slowdown reflects lower prices in transport and in housing, water, gas, electricity, and other fuels, two of the index's heaviest components. The final figure is due on 15 January 2026 and rarely differs much from the preliminary estimate, though it awaits government approval.

The IPC anchors adjustments to minimum wages, public sector salaries, and rents. With the rate below 3%, low-end wages must rise by double the IPC, capped at 6%. This points to a 5.4% increase for the 2026 minimum wage, from €1,447.33 to roughly €1,525.

The trend aligns with neighbouring countries. Spain's preliminary December IPC fell to 2.9% from November's 3%. France's data is set for release on 6 January 2026.

For context, December's 2.7% rate remains well below the 4.6% recorded in December 2023 but slightly above the 2.6% from December 2024.