Inflation, the rate at which prices go up, has fallen sharply and now stands at 2.39% The figure means that on average today’s prices are 2.39% higher than a year ago. Inflation is down from 4.09% last month.
Inflation is now at its lowest level in two years and the Belgian figure is closing in on the European central bank’s target of 2%.
Core inflation that ignores higher prices for fuel and unprocessed foods still stands at a concerning 6.95%.
Today’s sharp drop is being linked to the sky-high energy prices exactly a year ago. On average energy was 30% more expensive a year ago.
Alcoholic beverages, vehicle fuels and foreign travel all became more expensive last month. Air tickets, sugar products, bread and grains, hotel rooms, natural gas, meat, vegetables, alcohol-free drinks fruit and dairy all became cheaper.
The new inflation figure won’t trigger a 2% index increase for public sector wages and benefits despite government predictions this would happen.