Inflation in Belgium remained flat in May, at 3.36%, although food price inflation saw a spike for the first time in more than a year.
Latest figures from Statbel show that inflation in May fell only marginally from an annual rate of 3.37% in April, but is still higher than 3.18% in March.
The consumer price index (CPI), a measure of the prices of a typical shopping basket of consumer goods and services which is used to gauge inflation, increased by 0.48 points in May (or by 0.37%) to 131.58 points.
While overall inflation was flat in May, inflation for food products (including alcoholic beverages) rose for the first time since March 2023, and stood at 1.00% compared to 0.25% in April.
The main price increases recorded were for fruits, clothing, rent, foreign travel and citytrips, restaurants and cafes, fish and seafood, meat, dairy products, alcoholic beverages and holiday villages.
Meanwhile, fuels, electricity and vegetables had a downward effect on the index.
Energy inflation stood at 11.17% in May, compared to 9.19% last month and -1.61% in March, although Statbel pointed out that this increase in inflation is somewhat artificial as it is related to the winding down of energy supports put in place by the Belgian government
The price of natural gas increased by 0.6% in May compared to the previous month, while the price of electricity fell by 2.9% on average.
The inflation rate excluding energy products fell from 2.87% in April to 2.64% in May, while core inflation which excludes energy and unprocessed food products fell from 3.26% to 2.80%.
The smoothed health index (a four-month average which is used as the basis for indexation of pensions, social security benefits and some salaries and wages) reached 128.62 points in May. This is below the next pivotal index to trigger an increase in civil service pay and social benefits, which is set at 130.67 points.
May inflation figures for the eurozone are due to be published on Friday, results that economists at the European Central Bank (ECB) will be keeping a close eye on as they are due to meet in Frankfurt next week to make a decision about the direction of interest rates.
The ECB's chief economist has strongly signalled that the central bank will move to lower interest rates from record highs, after close to two years of consecutive increases aimed at tackling inflation.
