Energy is still the biggest culprit: gas is 149 percent more expensive than a year ago, electricity 50 percent and motor fuels 31 percent.
The figures show that inflation slow but certainly also in other services and products is starting to weigh in, and that it is no longer just energy that makes life more expensive. Food, for example, is now 4.63 percent more expensive than a year ago. For services (think hairdressers, cleaning staff or taxi drivers) inflation is now 3.20 percent. Those numbers are well above the target level of 2 percent, which is considered healthy. After energy, transport and food are the main contributors to inflation.
The VAT reduction on electricity had only a limited impact on inflation. The price of electricity in March was 11.7 percent lower than in February. But that does not alter the fact that the electricity bill is still 50 percent higher than a year ago.
For services (think hairdressers, cleaning staff or taxi drivers) inflation is now 3.20 percent
The fact that the inflation of non-energy products is also starting to rise increases the risk of a so-called wage-price spiral. After all, the increased living costs in Belgium are automatically compensated by wage increases. For companies, this means a bill of billions that affects their international competitive position. The National Bank has already warned about this effect, although according to the forecast it will only be temporary.
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