Federal Planning Bureau expects Belgian price index to be exceeded again in December

The price index in Belgium will be exceeded for the fourth time in twelve months in December, expects the Federal Planning Bureau. The reason is the sky-high inflation.

The FPB expects average annual inflation this year to be 8.5%. One month ago, the Planning Bureau still estimated inflation at 8.1%. Next year's inflation rate is expected to be 4.4%, compared to 3.5% in earlier forecasts.

The last time the price index was exceeded was in April. Before that, in December 2021 and February 2022. The next one is scheduled for August. That is a month earlier than expected. December 2022 and March 2023 will still follow, according to the FPB. 

If this index is exceeded, benefits will be increased by 2% one month later. Civil servants' salaries will follow another month later. In other words, the benefits and salaries of the civil servants will be indexed six times in eighteen months.

It is not only the salaries of civil servants that are increasing in line with inflation. High inflation also means that salaries in the private sector go up. However, this happens at a different pace in each sector. For some sectors this happens monthly, for others once a year. But holiday pay, end-of-year bonuses and other premiums and a whole host of supplementary pension schemes also rise with inflation.

(TOM)

© BELGA