Belgian inflation forecast raised; wage indexation triggers pulled forward

The Belgian Federal Planning Bureau revised its inflation forecast upward to 3.7% for this year and next, up from 3.6% and 3.4% respectively. As a result, the next pivot index thresholds for social benefits and civil servant salaries are now expected to be exceeded in November 2026 and April 2027, earlier than previously projected. This accelerates automatic wage indexation, adding to domestic cost pressures and potentially feeding a wage-price spiral.