Gas and electricity prices are skyrocketing across the EU, but Belgium’s automatic wage indexation has allowed the purchasing power to be better protected than in its neighbours.
The inflation rate in Belgium is nearing 10% as energy, food, and service prices continue to rise. There is a resurgence of the debate on purchasing power as a result of this. Despite this, while households (especially those with low incomes) will spend more on their energy bills, they are better protected than in other countries.
However, while real wages are falling this year, Belgium is one of the few countries in the EU where wages are indexed to inflation. This means they are automatically adjusted to keep pace with the rising cost of living, ensuring that purchasing power does not decrease as much as it would in other countries.
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