Planning Bureau expects inflation to decrease to 5.3 % next year

Planning Bureau expects inflation to decrease to 5.3 % next year
Credit: Belga

The cost of living crisis isn't increasing as quickly as last year and the Federal Planning Bureau expects the decrease to last in 2023 as well, according to Statbel data.

In November, the Federal Planning Bureau correctly predicted that inflation would fall in November. Inflation dropped from 12.27% to 10.63%.

Based on monthly forecasts, the Federal Planning Bureau suspects that the average annual inflation (national consumer price index) will reach 9.6% on average in 2022 and 5.3% in 2023, compared to 2.44% in 2021 and 0.74% in 2020.

Monthly evolution of inflation. Credit: Federal Planning Bureau

The average growth rate of the so-called 'health price index', which is used for the price indexation of wages, social benefits and house-rent, should be 9.2% in 2022 and 5.7% in 2023, compared to 2.01% in 2021 and 0.99% in 2020.

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In November 2022, the pivotal index for social benefits and public sector wages was last reached. As a result, social benefits were adjusted (by 2%) to the higher cost of living in December 2022 and salaries in the public sector will follow suit in January 2023.

According to the Bureau's 'health price index', an index for public wages and social benefits (currently 125.60) should next be reached in April 2023. As a result, social benefits should be adjusted (by 2%) to the higher cost of living in May 2023 and public wages should follow suit in June 2023.

But that would be the last wage indexation in 2023.


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