Inflation falls for fifth month in a row but food inflation remains stubbornly high

The fall in inflation has been very limited over the summer. In June, inflation stood at 4.15 per cent, in July at 4.14 per cent and now at 4.09 per cent. Still, it is already the fifth month in a row that inflation has fallen. In October last year, it peaked at 12.27 per cent.

The European Central Bank’s target is an inflation rate of 2 per cent. Prices rising a little, but not too much, because that would be a good lubricant for the economy. So with inflation at over 4 per cent, prices are still rising too quickly. This is also reflected in core inflation: that is the figure that does not take into account the price evolution of energy products and unprocessed foods. At 7.70 per cent in August, core inflation is still far too high.

Gas and electricity

That inflation is falling is mainly due to gas and electricity being much cheaper than a year ago. Natural gas is now 65.2 per cent cheaper than a year ago, electricity 36.2 per cent. In contrast, heating oil is a lot more expensive than in August last year: + 35.6 per cent.

Last spring, food prices in particular shot up. In March, food inflation peaked at 17.02 per cent. Despite falling to 12.73 per cent now, food inflation remains particularly high.