Inflation, the rate at which prices increase, has been falling in Belgium for seven months now, but this month, for the first time, edged higher. Year-on-year inflation in November stood at 0.76%. It’s still a relatively small increase and that is largely due to cheaper energy prices. Ignore energy prices and the cost of living is still considerable higher than a year ago.
In November olive oil, holiday parks, potatoes, tea, postal services, tobacco and sugar became more expensive. Compared to a year ago natural gas, electricity, petrol, diesel, TVs and computer accessories all became cheaper.
Energy prices may have fallen sharply compared with only six months ago, still this month the price of both gas and electricity underwent an increase, albeit a modest one.
Last month overall inflation stood at 0.36%. This month it rose to 0.76%. Ignore the sharp drop in energy prices and core inflation stands at 5.95%. That figure is down from 6.55% last month.
Food inflation at 8.22% is still galloping, though here too a downward trend is noticeable. Food inflation in October stood at 8.98%.
This month electricity became 1.7% more expensive and gas 10.8% compared with a month ago. Year-on-year energy inflation stands at -32.9%.