The pivot index has been exceeded. This causes benefits and civil servant wages to rise. — © ANP / Peter Hilz
Lifespan
Brussel –
Inflation rose from 3.18 to 3.37 percent in April. The central index has been exceeded, so that benefits and government wages will rise again. This is reported by statistics agency Statbel.
The exceeding of the central index had already been predicted by the Federal Planning Bureau. By exceeding the central index, wages of government employees and benefits will increase by 2 percent. This happens in May for benefits and in June for government employees.
The last time the pivot index was overwritten was in October last year. According to the Planning Bureau’s estimates, we now have to wait another ten months for the next exceedance of the central index. The fact that benefits and government wages are being increased again indicates that inflation is still not under control. For blue-collar and white-collar workers in the private sector, the wage increase depends on the sector.
Power supply
The main price increases in April related to motor fuels, hotel rooms and restaurants and cafes. Dairy products, fruit, meat, bread and grains, clothing, foreign travel and city trips, electricity, fish and seafood, pet items and holiday villages, on the other hand, had a lowering effect on the index.
Inflation for food (including alcoholic beverages) fell for the thirteenth month in a row, reaching 0.25 percent this month compared to 3.21 percent in March.
Extinguishing effect
Core inflation, which does not take into account the price evolution of energy products and unprocessed foods, fell for the eleventh month in a row and stood at 3.26 percent in April, compared to 3.85 percent in March.
For the first time since March last year, energy inflation is positive. The increase in recent months is the result of the fading effect of the impact of the basic package for electricity and natural gas. In March, the last effect of the basic package disappeared from the index figure. The disappearance of the basic package will therefore have an increasing effect on inflation until March 2025, it is said. (gc)