Inflation in Belgium reaches its highest level since the 2008 crisis

You will inevitably notice it: from the electricity bill to construction lumber, everything is increasing. And sometimes that increase accelerates. This is currently the case, and it is not good news for our portfolios.

Inflation, and therefore the average increase in the cost of living, is still increasing, settling at 4,16% in October, against 2,86% in September, said the statistical office Statbel on Thursday. It reached its highest level since October 2008, when it stood at 4.72%.

Unsurprisingly, the sharp rise in inflation this month is due to the sharp rise in prices of energy, says Statbel. Energy inflation rises to 30,86% (up from 19.37% last month) and contributes 2.62 percentage points to headline inflation. Electricity now costs 25.8% more than a year ago. Natural gas costs 77.5% more year-on-year. The price of heating diesel, smoothed over 12 months, rose 7.4% in one year. Fuels now cost 25.8% more than a year ago.

So, for all those who have to heat large, poorly insulated houses, and who travel a lot by car, life becomes difficult.

Everything increases …

Core inflation, which does not take into account changes in the prices of energy products and unprocessed food products, stood at 1.95% in October, compared with 1.61% in September.

Inflation for services rose from 2.02% to 2.46%.

Rent inflation rose to 2.47% in September and fell to 2.44% in October.

In addition, inflation based on the health index fell from 2.29 to 3.48%.

… except eating and drinking

Inflation for food and non-alcoholic beverages is negative for the ninth consecutive month and currently stands at -0.31%, compared to -0.56% the previous month.

The consumer price index rose 1.65 points this month to 1.47%, according to Statbel. It stands at 114.20 points from 112.55 points in September 2021. The next pivotal index for the civil service and social allowances is 111.53 points.

In October, the main price increases concerned natural gas, electricity, fuels, hotel rooms, heating oil, meat, restaurants and cafes, dairy products and the purchase of vehicles. Alcoholic beverages, on the other hand, had a downward effect on the index.