The Federal Planning Bureau expects the central index to be exceeded as early as June, according to the latest inflation forecasts published today. The previous forecast assumed an exceedance in July. The central index would be exceeded again in December.
Source: Belga
As a result of the excess in June, social benefits and salaries of government employees would be indexed in September. Normally, the so-called penny index already applies and therefore the indexation would be applied to only part of the gross amount (maximum 2,000 euros for benefits and 4,000 euros for wages).
The Planning Bureau expects that the subsequent key indexes will be exceeded in December 2026 and in August 2027.
Inflation of 3.5 percent
The Planning Bureau assumes an average inflation rate of 3.5 percent for 2026 as a whole. The previous forecast in April assumed an average inflation of 3.2 percent, which was also a sharp increase compared to the beginning of this year. The reason is the war in the Middle East, which, among other things, has made energy considerably more expensive.
In its latest forecasts, the Planning Bureau expects inflation to remain above 4 percent for another entire year, with the exception of July (3.92 percent).
The peak was expected to be reached in January, with an inflation rate of 4.57 percent. Inflation would not start to fall until April 2027 (2.81 percent), but it would remain above 2 percent for a whole year. The Planning Bureau expects an average inflation of 3 percent for 2027 as a whole.
Health index
According to the Planning Bureau, the health index, which is used to index rents, would grow by an average of 3.2 percent this year and 3.3 percent next year.
The latest forecasts took into account an average oil price (Brent) of $96 per barrel this year and $79 per barrel next year. Brent crude cost more than $110 a barrel on Tuesday.
