April 18, 2023

Consumer price index for March 2023

  • The consumer price index increased by 0.72 points or 0.57% this month.
  • Inflation based on the health index has risen from 6.84% to 7.35%.
  • The smoothed health index amounted to 125.08 points in March.
  • Inflation for food products has sharply increased in recent months. Food inflation (including alcoholic beverages) now stands at 17.02%, compared to 16.12% in February. The contribution of food products to inflation currently amounts to 3.12 percentage points.
  • Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 8.57% in March, compared to 8.28% in February. This is due to the increase in inflation for processed food products and services.
  • The most significant price increases in March were registered for fruit, electricity, personal care, vegetables, confectionery, travels abroad, bread and cereals, restaurants and cafés and non-alcoholic beverages. However, natural gas and alcoholic beverages have had a decreasing effect on the index.

Inflation amounts to 6.67% in March compared to 6.62% in February and 8.05% in January. Inflation based on the health index increased to 7.35% this month compared to 6.84% in February and 8.28% in January. Inflation without energy increased to 9.25%, compared to 8.87% in February and 8.61% in January. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 8.57% in March, compared to 8.28% in February and 8.05% in January.

Comment on inflation

With regard to energy, we see a new significant decrease in inflation this month. It now stands at -10.11%, compared to -7.93% last month and 5.21% in January. For electricity, inflation is currently -2.3% compared to -16.0% last month. In December, it wass still 35.5%. For natural gas, it goes from -30.8% last month to -45.6% this month. In December, it was still 73.1%. Compared to last month, prices for natural gas decreased by 17.6% and those for electricity increased by 2.7%. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 33.1% in a year. Motor fuels cost 9.5% less than in March last year and decreased by 0.9% this month compared to the previous month.

Inflation for services has increased to 7.06% up from 6.96%. Inflation for rents has decreased to 6.11% from 6.16%. Food inflation (including alcoholic beverages) now stands at 17.02% compared to 16.12% last month. This inflation has increased sharply in recent months. In March last year, it was still 4.63%.

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 25.4%. In March 2022, it was still 12.8%. For fish, inflation is now 17.0% compared to 5.5% in March 2022. Inflation for dairy products amounts to 26.5% this month compared to 5.8% in March 2022. For bread and cereals, inflation stands at 19.9% this month compared to 5.5% in March last year. Inflation for meat amounts to 15.3% this month compared to 3.7% in March 2022.

The decrease in inflation in recent months is associated with lower energy prices. Energy inflation goes from -7.93% in February 2023 to -10.11% in March 2023 and accounts for -1.49 percentage points to total inflation. With an inflation of 17.02%, food products account for 3.24 percentage points.

The price of natural gas has decreased by 17.6% on average compared to the previous month. The price of electricity has increased by 2.7% on average this month.

Source: STATBEL
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