Inflation is falling below 3 percent for the first time since January

In June, inflation in our country peaked at 3.74 percent. Last month there was already a small reduction to 3.64 percent, but this month’s reduction is much greater. Inflation is now at 2.86 percent. The European Central Bank is targeting an inflation rate of around 2 percent.

The low food inflation is particularly striking. This fell to 0.04 percent this month, compared to 0.54 percent last month. Right now food is hardly more expensive than it was 1 year ago. In March this year, food inflation peaked at 17 percent.

The health index – which is used, among other things, in calculating the wage index, social benefits and rent – fell from 3.60 percent to 3.20 percent.

The most significant price increases in August were for tobacco, private rentals, non-alcoholic beverages, hotel rooms, clothing and restaurants and cafes. On the other hand, motor fuel, household appliances, flowers and plants, vegetables and natural gas became cheaper this month, said Statbel.