Inflation, the figure indicating how fast prices are rising in Belgium, fell to 2.86 per cent this month according to figures from the Belgian statistics service Statbel. That means life is now 2.86 per cent more expensive than 1 year ago. It is the first time since January (1.75 per cent) that inflation is below 3 per cent. In June, Belgian inflation peaked at 3.74 per cent. Last month there was a slight drop to 3.64 per cent, but this month's drop is a lot bigger. Inflation now stands at 2.86 per cent. The European Central Bank’s target is an inflation rate of around 2 per cent.
Particularly striking is the drop in food inflation. It dropped to 0.04 per cent this month, down from 0.54 per cent last month. It means food is barely more expensive at the moment than 1 year ago. As recently as March this year, food inflation peaked at 17 per cent.
The health index – used for calculating the indexation of wages, social benefits and rents - fell to 3.20 per cent from 3.60 per cent last month.
The main price increases in August were for tobacco, private rent, non-alcoholic beverages, hotel rooms, clothing and restaurants and cafes. In contrast, motor fuels, household appliances, flowers and plants, vegetables and natural gas became cheaper this month, Statbel says.
Energy inflation also falls
Energy products are still much more expensive than last year: the price of electricity, for instance, is 11.3 per cent higher and that of natural gas is as much as 103 per cent higher. The main factor here is the ending of support measures introduced during the energy crisis last year. That effect will be felt until February 2025, Statbel says.
Meanwhile, fuel inflation is heading in the right direction: it stood at 6.96 per cent in August compared to 14 per cent in July and over 15 per cent in June. Motor fuels and heating oil were both 9.3 per cent cheaper than last year.
Core inflation, which does not take into account the price evolution of volatile factors like energy products and unprocessed foods, is also falling: from 3.04 per cent in July to 2.73 per cent in August.