Inflation continued to soar in June, standing at 9.65%, against 8.97% in May, said Statbel, the Belgian statistics office, on Wednesday. This is the highest level since October 1982, when it reached 9.84%.
Once again, it is mainly high energy prices that are pushing inflation up. Energy products were on average more than half as expensive in June as they were a year ago. With natural gas, there is even more than a doubling.
However, notes Statbel, food inflation has also risen sharply in recent months. Food inflation, including alcoholic beverages, stood at 8.44% in June.
In November last year, it was less than half a percent. Inflation in Belgium has been rising continuously since the beginning of 2021. In January 2021, it was 0.26%. The European Central Bank (ECB) is targeting an inflation rate of around 2%.
All the inflation indicators show an increase in June, both on the basis of the health index (8.72%, against 8.34% in May), the inflation rate excluding energy products (5 .26%, against 4.53% in May) than underlying inflation (5.07%, against 4.43% in May).
Inflation has been steadily climbing in recent months, pushed up by soaring energy prices. Energy inflation reached 55.99% in June, against 56.8% in May. It contributes 4.91 percentage points to total inflation.
Electricity costs 49% more than a year ago and natural gas rose by 109.1% compared to June 2021. The price of heating oil, smoothed over 12 months, increased by 65.6 % in one year and fuels increased by 39.2%. However, on a monthly basis, the price of gas fell on average by 2.57% and electricity by 1.54%.
Food products also rose sharply, with inflation at 8.44%, compared to 6.32% in May. They contribute 1.67 pp to total inflation.
The first estimate of inflation according to the European harmonized consumer price index, which allows comparisons with European countries, is 10.5% in June. The difference is mainly due to a different calculation method for heating oil. The consumer price index rose by 1.03 points in June, to reach 122.04 points.
The health index reached 121.02 points (+0.77) and the smoothed health index 117.58 points. It is approaching the next pivot index for the civil service and social benefits, set at 118.36 points.
Motor fuels, meat, combined telecommunication services, bread and cereals, heating oil, the purchase of vehicles, private rents, soft drinks and dairy products exerted upward pressure on the ‘index. Natural gas, alcoholic beverages, electricity and clothing exerted a downward effect.
Symbol of the increase in the price of food, crisps, which have increased by 20%: