The November inflation figures that were published by the federal statistics bureau Stabel on Thursday show a 0.4 percentage point rise in inflation compared with the figures for October. The increase has been driven mainly by higher prices for services and certain consumer goods.
The general inflation rate rose from 2% in October to 2.4% in November. Meanwhile, the rate that is based on the so-called “Health Index” that excludes products such as alcoholic drinks, tobacco and petrol rose from 2.11% in October to 2.45% in November. That is more than expected, as the Federal Planning Bureau had forecast only a modest rise.
Travel, household appliances, electricity, motor fuels and smartphones put upward pressure on inflation, while airline tickets, stays at holiday parks and natural gas helped temper the rise. Core inflation (excluding energy and unprocessed foods) continued to rise. Meanwhile energy inflation remained negative, while services and food inflation rose notably.
If inflation remains high in December, the trigger index that brings in its wake an increase in public sector's wages and benefits could be exceeded by the end of the year. This would result in a 2% increase in public sector wages and benefitsnext March. Previously, Statbel had forecast the trigger index mechanism would be triggered in January.
2.2% increase for 500,000 private sector workers
the end of this year.
The HR service providers Acerta and SD Worx have calculated that over half a million workers in Belgium will receive a pay rise of about 2.2% at the start of next year. These include office workers, food industry workers and those working in catering and transport.
Wage indexation is calculated differently in Belgium's private sector. The timing and percentage depend on in which sector of the economy a person works and are determined in binding collective agreements. The exact percentage will also depend on whether the measure to cap index-linked increase in wages to the first 4,000 euro of a person’s salary is approved before the end of this year.
Whatever is the case, 2.2% is significantly lower than the 3.58% rise they received at the beginning of this year.