Purchasing power

Purchasing power is the quantity of goods and services a consumer can buy with their disposable income. It is influenced by income, taxes, inflation and any wage adjustments.

Falling purchasing power, including through inflation, often leads to more payment arrears. In practice, the number of instalment plans and debt mediation trajectories then rises.

Governments try to keep purchasing power on track by periodically indexing wages, benefits and pensions when the pivot index is exceeded.

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