Inflation

Inflation is the general rise in prices of goods and services over a given period. As a result, the purchasing power of money falls: with the same income, consumers can buy fewer products and services. Inflation often has a direct impact on both households and businesses. Households have less disposable income for fixed costs and invoices, while companies face rising operating costs. This can lead to payment arrears, financial difficulties and an increase in unpaid invoices. In periods of high inflation, businesses therefore more often see a rising risk of default and debt build-up.

The definitions in this section reflect the Belgian situation, unless otherwise stated. The texts summarise concepts in everyday language and should not be read as comprehensive or definitive. Suggestions or corrections may always be sent to glossary@tcm.be.

Updated: 10/08/2026