Belgium’s inflation up in September

Belgium’s inflation rate edged up to 3.06 per cent in September 2024, from 2.86 per cent in August, largely due to rising prices of electricity, natural gas, and travel, according to the latest data.

Core inflation, which excludes volatile energy and unprocessed food prices, also increased slightly, standing at 2.80 per cent in September compared to 2.73 per cent the previous month.

Energy inflation continues to play a significant role, despite moderating from 6.96 per cent in August to 6.72 per cent in September. Natural gas prices surged by 4.5 per cent month-on-month, while electricity prices increased by 4.4 per cent.

On a yearly basis, natural gas inflation skyrocketed to 138.1 per cent, up from 103.0 per cent in August. However, domestic heating oil prices fell by 10.6 per cent over the past year, and motor fuel prices were down 14.7 per cent compared to September 2023.

The consumer price index (CPI) decreased by 0.50 per cent in September, dropping to 132.15 points from 132.81 points in August. The health index, which excludes alcohol, tobacco, and motor fuel prices, declined slightly to 132.41 points from 132.94 points in August.

Housing, water, and energy made the largest contribution to inflation, accounting for 1.59 percentage points, while transport had the largest downward effect, subtracting 0.90 percentage points from the overall figure.

The European harmonised index of consumer prices (HICP) flash estimate indicated a 4.5 per cent inflation rate for September.

Despite energy inflation is moderating, the expiration of the basic energy package continues to push prices higher, and its impact is expected to persist until February 2025.