September 13, 2022

Consumer price index  in Belgium – August 2022

  • Inflation rose from 9.62% to 9.94% in August, reaching its highest level since March 1976, when it stood at 9.96%.
  • The consumer price index this month increases by 1.00 points or 0.81%.
  • Inflation based on the health index has increased to 9.70% from 9.07%.
  • The smoothed health index is running at 119.39 points in August.
  • The high inflation this month, as in recent months, is largely due to high energy prices. Energy currently has an inflation rate of 49.81% and accounts for 4.43 percentage points of the total inflation.
  • Furthermore, inflation for food products has also sharply increased in recent months. Inflation for food products (including alcoholic beverages) stands at 9.71% this month, The contribution of food products to inflation currently amounts to 1.92 percentage points.
  • Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 5.74% in August, compared to 5.49% in July. This is a result of increased inflation for processed food and services.
  • The main price increases in August concerned electricity, natural gas, bread and cereals, clothing, confectionery, alcoholic beverages, hotel rooms, meat and personal care products. However, motor fuels, domestic heating oil and fruit had a downward effect on the index.

The inflation rate in August was 9.94% compared to 9.62% in July and 9.65% in June. Inflation based on the health index amounted to 9.70% this month compared to 9.07% in July and 8.72% in June. Inflation without energy rose to 5.99% compared to 5.76% in July and 5.26% in June. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, was 5.74% in August, compared to 5.49% in July and 5.07% in June.

Inflation for services has risen from 5.08% to 5.36%. Inflation for rents remained almost unchanged, going from 3.74% to 3.73%. Inflation for food products (including alcoholic beverages) stands at 9.71% this month, compared to 9.24% last month. This inflation rate has risen sharply in recent months. In November last year, it was still 0.47%. In particular, inflation for oils, fish, dairy products, bread and cereals and meat has sharply increased in recent months. Inflation for oils stands this month at 21.3%. In November, it was still 3.6%. For fish, inflation is now 13.2% compared to -0.4% in November. Inflation for dairy products amounts to 12.4% this month compared to 0.6% in November. For bread and cereals, it stands this month at 12.7% compared to 1.7% in November. Inflation for meat amounts this month to 10.2% compared to 0.8% in November.

The sharp increase in inflation since autumn 2021 is largely due to energy products. Energy inflation is now running at 49.81%, compared to 49.11% last month and 55.99% in June. Electricity is now 57.2% more expensive than a year ago. Natural gas is 106.9% more expensive than in August last year. The price of domestic heating oil, calculated based on a smoothed 12-month moving average, has increased by 52.6% in one year. Motor fuels are 21.0% more expensive than last year.

The high inflation is mainly due to the high energy prices. Energy currently has an inflation rate of 49.81% and accounts for 4.43 percentage points of the total inflation. Food, with an inflation rate of 9.71%, contributes 1.92 percentage points.

The price of natural gas has increased by 12.3% on average compared to the previous month. Prices for electricity have gone up by 11.5% on average this month.

The consumer price index has increased by 1.00 point or 0.81% in August 2022 and now amounts to 124.05 points, compared to 123.05 points in July 2022 (2013=100). The health index has gained 1.33 point to 123.68 points in August, compared to 122.35 points in July. The smoothed health index is running at 119.39 points in August. The next central index for public service and social benefits is set at 120.73 points.

The main price increases in August concerned electricity, natural gas, bread and cereals, clothing, confectionery, alcoholic beverages, hotel rooms, meat and personal care products. However, motor fuels, domestic heating oil and fruit had a downward effect on the index.

Source: STATBEL
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