In light of this, Professor Schoors also sees a problem with the Belgian system where wages are automatically indexed. This system ensures that purchasing power is maintained to some extent when prices rise. But that also creates a spiral, says Schoors.
“Energy and food are becoming more expensive. As a result, wages will rise at some point due to indexation. For all companies, costs will increase, which will drag on to higher prices. Inflation will rise.” In his own words, Schoors is not necessarily an opponent of automatic wage indexation. “But the way it works now, it exacerbates the problem,” it seems to him.
According to the professor, the index does not necessarily contain what people actually pay. “The index includes, for example, the price of a new energy contract. This means that a number of people who still don’t feel much because they still have a fixed price, are rewarded too much in this way.” This takes too much account of speculative increases in energy prices, says Schoors.
