Belgium’s Planning Office has modified inflation predictions for 2023. It believes average inflation will level out at 4.3% this year. Only a month ago average inflation was supposed to total 5.3% this year.
Earlier predictions didn’t take account of a permanent reduction in VAT on energy. Now the government has decided to keep VAT at 6% on gas and electricity inflation is expected to fall more quickly.
For 2024 inflation of 2.9% is anticipated. Only last year inflation stood at 9.59%, the result of an explosion in energy prices triggered by Russia’s further invasion of Ukraine.
Falling inflation will also affect wages. The wage trigger that heralds a 2% top up for benefit claimants and many wage earners is only expected to be activated in June and not in April as initially forecast. Two further 2% top-ups are predicted to be triggered in 2024, in January and November.