Around one third of people in Belgium are barely able to make ends meet on their current income, as over the past year half of people say they have had to tighten their belts due to soaring prices.
A barometer on purchasing power carried out by consumer credit firm Cofidis found that 31% of people surveyed in Belgium say their earnings just about cover their monthly needs, up from 25% a year previously.
Two thirds of people (67%) say their purchasing power has remained the same as last year, while one in five feel it has deteriorated. The decline in purchasing power for some respondents was put down to rising healthcare costs, increased housing expenses such as rent or mortgages, and changes in employment situation.
According to the 1,000 respondents surveyed online in April by Cofidis, people are finding it harder than last year to meet their healthcare costs, with the percentage of respondents having difficulty increasing from 9% to 12%. Meanwhile paying for energy bills (13%) and taking out insurance (9%) has also posed a challenge.
An economic outlook report published by the Federal Planning Bureau last week noted that, as inflation starts to ease, consumer prices should start to fall by the end of this year. People's real disposable incomes should therefore grow by 1.4% per year between 2026 and 2029.
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However, nearly seven in ten people (68%) believe their purchasing power will not grow in the next three years, rising to 74% among people with dependant children.
The report also highlighted that, on average, respondents felt that they earn €300 less per month than they would need to live without worrying about their budget.
Due to soaring prices, half have had to tighten their belts by cutting back on non-essential expenses (clothing and leisure activities) and reducing their consumption of water, gas and electricity, as well as opting for cheaper or second-hand goods.
The latest figures from national statistical office Statbel show that inflation in Belgium was at 3.36% in May, with food price inflation seeing a spike for the first time in more than a year.
