Inflation fell to 1.10 per cent this month, compared to 2.06 per cent in December and 2.40 per cent in November. This sharp drop in the cost of living is clear from figures released by the Belgian statistics agency Statbel. Inflation is now at its lowest level since November 2023. Compared to last year, energy prices in particular have fallen sharply.
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Inflation drops to 1.10 per cent
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Whereas inflation peaked at 4.08 per cent a year ago, the rise in the cost of living has fallen to 1.10 per cent this month.
This decline is mainly due to lower energy prices compared to a year ago: overall, they are 9.24 per cent lower than a year ago.
Looking in more detail, we see that electricity is now 4.3 per cent cheaper than a year ago and natural gas is even 15.6 per cent cheaper.
Motor fuels, on the other hand, are 7.02 per cent cheaper than in January last year and have fallen by 3.60 per cent this month compared to last month.
Compared to last month, gas and electricity prices have risen slightly: the price of natural gas has risen by 0.34 per cent compared to last month and that of electricity by 0.93 per cent.
These are the prices consumers are paying this month. In the long term, they may rise due to increasing wholesale prices. These have skyrocketed in recent weeks due to rising tensions between the US and the EU over Greenland.
Other significant price reductions can be found in electronic products: smartphones became 17.8 per cent cheaper than a year ago, while computers, laptops and tablets became 14.3 per cent cheaper.
What became more expensive?
Items that are significantly more expensive than a year ago include medicines and vaccines (+16.9 per cent), stays at holiday villages and campsites (+16 per cent), telephone subscriptions (+13.6 per cent), airline tickets (+13.3 per cent), event tickets (+12.8 per cent) and beef and veal (+11.9 per cent).
What about the index?
The Federal Planning Office expects inflation to average 1.8 per cent this year. In its latest forecast, at the beginning of this month, the Planning Office – which had expected slightly higher inflation in January – predicted that the pivot index would be exceeded in December 2026.
If the cost of living rises due to inflation and the index rises above a certain level, i.e. the pivot index, wages and social benefits will increase.
The last time the pivot index was exceeded was last month.