The inflation level in our country has risen from 0.76 percent in November to 1.35 percent in December
With an inflation rate of 1.35 percent, Belgium remains well below the 2 percent limit, which is the long-term target of the European Central Bank. However, after a period of declining inflation, there has again been a slight increase in the monthly consumer price index.
The limited increase in lifespan is mainly due to energy prices. For example, the price of natural gas rose by more than a third (+37.7 percent) in December compared to the previous month of November. The price of electricity this month was on average 7.3 percent higher than in November. According to the FPS Economy, part of this increase can be “attributed to the phasing out of the impact of the basic energy package”, the federal government’s support measure to absorb the high energy prices of 2022 and early 2023. On an annual basis, energy prices are still more than a quarter lower than at the end of 2022.
More good news: inflation for food products (including alcoholic beverages) fell for the tenth month in a row, reaching 7.03 percent this month, compared to 8.22 percent in November. Core inflation, which does not take into account the price evolution of energy products and unprocessed foods, is also falling for the seventh month in a row and is now 5.47 percent.
In addition to natural gas and electricity, the most important price increases in December were for airline tickets, private rental homes, fish, and seafood. Motor fuels, fruit, alcoholic drinks, meat, and bread and grains, on the other hand, had a lowering effect on the index figure, according to the FPS Economy.
On an annual basis, basic products such as sugar and potatoes have become 14 percent more expensive, and olive oil even 30 percent more expensive. Food, including alcoholic beverages, became cheaper for the tenth month in a row: food inflation stood at 7.03 percent compared to 8.22 percent in December.