Belgian inflation falls to 1.1 per cent, reaching lowest level since late 2023
Belgian inflation fell to 1.1 per cent year on year in January, down from 2.06 percent in December, statistics agency Statbel announced on Thursday. It is the lowest inflation rate since November 2023, when it stood at 0.76 per cent.
The low figure is remarkably different to the situation in January 2025, when inflation stood at 4.08 per cent. This sharp decline is partly due to the fall in energy prices, with the price of natural gas dropping by 15.6 per cent. Many technological products, including smartphones, computers, and TVs, also saw double-digit price falls.
Compared to last month, however, airline tickets were the main items that exerted downward pressure on inflation, being on average 18 per cent cheaper. Prices also fell for fuels (-3.6 per cent) and hotel stays (-8.2 per cent).
Consumer prices nevertheless rose by 0.44 per cent compared to December. Medicines became 16.5 per cent more expensive on average. Higher prices were also registered for holiday villages (+7.4 per cent), alcoholic (+3.4 per cent) and non-alcoholic beverages (+2.7 per cent). household services (+3.3 per cent) and vegetables (+2.3 per cent).
Core and health inflation also fall
Core inflation, which excludes energy and unprocessed food prices, declined from 3 percent in December to 2.54 per cent in January. This is the lowest level since August last year.
Inflation based on the health index also dropped markedly, from 2.21 per cent to 1.37 per cent, the lowest level since November 2023. The health index excludes products such as alcoholic beverages, tobacco and fuel and is used to determine adjustments to benefits and civil servant salaries.
The so-called pivot index was last exceeded in December. In its most recent forecast at the beginning of this month, the Federal Planning Bureau (which had expected slightly higher inflation in January) predicted that the next exceedance will occur in December 2026.
Statbel also introduced several methodological changes this month. The reference year for the consumer price index was updated to 2025, a modification that has no impact on inflation figures. In addition, the basket of goods and services was adjusted to better reflect changing consumption habits, a change that only affects details and not the overall inflation rate.
PHOTO © AFP / JEAN-SEBASTIEN EVRARD
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