Inflation in Belgium continues to rise. Figures released on Friday morning show that this month the rate of inflation in Belgium rose to 12.27%. As in previous months the high price of gas is a major contributory factor fuelling inflation. However, rising food price are also contributing to the inflation hike. The high inflation rate, the highest rate in 47 years, has led to the trigger index being exceeded once again. This is the fourth time that the trigger index has been exceeded this year. Each time the trigger index is exceeded, pensions and benefits rise the following month and public sector wages the month after.
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Inflation in October tops 12%
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High energy prices remain a major contributory factor in fuelling inflation. The peak in wholesale gas prices back in August has now filtered through to domestic gas bills. Compared with a year ago we are currently paying 126.5% more for our gas. Meanwhile, the price of electricity is up by 84.7%. The increase in energy prices accounts for 6 percentage points of the 12.27% inflation rate.
The price of food has also increased significantly during the past year. Since October 2021 the price of food in Belgium has increased by 13%. Bread, meat, dairy products, and vegetables are among the foodstuffs that have significantly increased in price.
Trigger index
For the fourth time this year the trigger index has been exceeded. This means that benefits and pensions will increase by 2% next month and public sector wages will increase by 2% in December.
The wages of most private sector employees also increase with inflation. However, when this happens varies sector to sector. Around 1 million employees receive an index-linked increase at the start of each year. In January 2023 around 1 million employees in Belgium we see their wages increase by 11.5%.