After declining for 15 consecutive months, food inflation in Belgium slightly increased in July, driven by price hikes for olive oil, chocolate and potatoes.
The inflation of supermarket products – a rate based on a monthly calculation of more than 3,000 products in seven supermarket chains in the country – reached a historic peak of 20.62% in March 2023. It has since decreased, dropping to a two-year low in April this year, then further declining to 2.31% in June.
However, this month-long decrease ended in July, consumer rights organisation Test Achats confirmed on Tuesday. "Inflation rose slightly in July, from 2.31% to 2.49%, ending a 15-month decline," spokesperson Laura Clays said. In other words, the products analysed by the organisation last month were 2.49% more expensive than in July last year.
Biggest risers
Unsurprisingly, olive oil saw the biggest year-on-year increase, with the price rising by over one quarter (28%). Due to the rise in cocoa prices driven by supply concerns in key cocoa-producing regions, dark chocolate also has a high inflation rate (+27%).
Despite the small increase in supermarket inflation overall, some product categories did drop in price.
The most significant reductions were in stationery and household products (such as kitchen roll, toilet paper, aluminium foil and cling film), which dropped by 4%. Fruit also became 1.5% cheaper, with pears (-9%), lemons (-9%) and bananas (-5%) all falling in price.
Although inflation is not as high as it was a year ago, Test Achats recorded a 27% increase in the cost of groceries compared to January 2022, when inflation was above 2% for the first time.
"Olive oil, for example, is 71% more expensive today than in January 2022, potatoes 56% more expensive and shrimps 41% more expensive."
In the ongoing government formation talks, there are rumours of plans to reduce VAT on fruit and vegetables to 0%. The organisation welcomes this move, as long as it benefits consumers and not manufacturers' margins.
However, Test Achats has questioned the intentions for other food products. "We want to draw the formator's [Bart De Wever] attention to the fact that food must remain affordable for everyone and that in these times of strong food inflation, the price of basic products must remain stable," concluded Clays.
