Andorra December CPI Falls to 2.7%, Triggering 5.4% Minimum Wage Hike

Andorra's preliminary December consumer price index fell to a 2.7% year-on-year rate, according to the Department of Statistics' advance indicator released Friday, which incorporates 99% of required data.

The figure marks a 0.1 percentage point decline from November's 2.8%, despite December typically seeing heightened inflation pressures. This moderation stems primarily from falling prices in transport and in housing, water, gas, electricity, and other fuels—two of the index's largest components. The final data, expected on 15 January 2026, requires government approval and seldom deviates significantly from the preliminary reading, though some sources note it lacks details on food prices or underlying inflation trends.

Below the 3% threshold, the IPC triggers a mandatory minimum wage increase of double the rate, capped at 6%. This sets a projected 5.4% rise for 2026, lifting the current €1,447.33 monthly base to about €1,525. The index also guides public sector pay and rental adjustments.

The pattern mirrors nearby nations. Spain's preliminary December IPC dipped to 2.9% from November's 3%. France's advance figure is due on 6 January 2026.

At 2.7%, the rate sits well under December 2023's 4.6% but edges above December 2024's 2.6%, indicating steady moderation within a moderate range.