Belgium (The Brussels morning newspaper): The FPB’s latest inflation forecast predicts consumer price inflation at 3.2% for 2024 and 1.9% for 2025, significantly lower than previous years, with adjustments to social benefits expected in early 2025.
Based on data from Statbel up until August 2024 of this year, the FPB as of this week unveiled its latest price predictions for the future right through to end-2025.According to the forecast of the FPB, the average consumer prices will rise by 3.2% in 2024 and drop to 1.9%. These rates are significantly lower than 2023’s 4.06% and 2022’s 9.59% In 2022, due to post-lockdown demand, supply chain problems and the energy crisis brought on by the Russian invasion of Ukraine, both Belgian and global inflation skyrocketed.
What are the CFPB’s latest inflation projections and implications?
The FPB states that for 2024 the inflation estimate using the “health price index” is anticipated at 3.3% and 2.1% for 2025. Such figures are lower than the rates of 4.33% in 2023 as well as 9.25% in 2022. Once the health price index outgrows a certain threshold, social benefits and wages in the public sector will automatically rise in order to equate them with rising living costs. This main index was last breached when it happened for the first time in April this year.
The FPB is predicting that the key index will reach 130.67 by January 2025. In this regard, social benefits will experience a 2% increase by February and public sector salaries will follow suit in March. The average oil price is expected to be around $81 per barrel in 2024 and $74 in 2025 according to FPB forecasts. Moreover, they anticipate an exchange rate for euro against dollar at 1.09 dollars per euro in 2024 and 1.13 dollars per euro in 2025 as well. Also, at the beginning of October FPB will issue its subsequent forecast on inflation.
