Energy pushes Belgian prices 5.26 percent higher in October, with wage indexation due in January

Inflation in Belgium rose to 5.26 percent in October, up from 4.69 percent in September, according to figures from statistics office Statbel reported by Business AM, Trends and La Libre. According to La Libre it is the highest level since the 2022 energy crisis. The cause lies almost entirely with energy: energy products were 33.22 percent more expensive than a year earlier. Natural gas rose 11.3 percent in a single month and now costs more than half as much again as last year, while electricity rose 8.5 percent month on month, Business AM reports. De Tijd links the rise to the war in Iran, while La Libre points to the conflicts in the Middle East and Ukraine.

Excluding energy and unprocessed food the picture is calmer: that core inflation fell from 3.00 to 2.80 percent. Food even became very slightly cheaper. Prices did rise for higher education enrolment fees, plane tickets, rents and clothing, among others, Statbel says according to Trends.

The health index, the basis for automatic indexation, rose 4.53 percent. That brings the pivot index for benefits and civil service pay closer: the Federal Planning Bureau expects it to be exceeded in November and again in April, La Libre reports. For private-sector employees the big step comes in January. De Tijd expects a pay rise of 4.17 percent for half a million white-collar workers. Payroll services firm Acerta tells La Libre it arrives at 4.65 percent for the more than 600,000 employees covered by joint committee 200, although that figure may still change. La Libre recalls that the government has agreed to cap indexation.

At the pump there is a small respite today. The maximum price of B7 diesel falls by 2.4 cents to 2.486 euros a litre, the FPS Economy said according to La Libre. On Wednesday a record of 2.51 euros was set.