Belgium recorded an inflation rate of 4.3% in 2024, one of the highest in the eurozone and significantly higher than the 2.3% in 2023.
This increase is mainly due to the withdrawal of energy support and higher excise duties on energy and tobacco, according to the Price Observatory of the Ministry of Economy.
Gas and electricity prices rose by 9.7% over the year.
The Price Observatory stated that if government support measures had been maintained, energy products would have been 5.2% cheaper compared to 2023. In that scenario, Belgium’s total inflation would have been 2.6%.
The impact of these changes is expected to persist until February 2025.
In addition to the withdrawal of support measures, the increase in excise duties also contributed to higher energy inflation.
The government permanently kept VAT at 6% for electricity and natural gas after the energy crisis but opted for a flexible excise system.
With unchanged taxes, energy products would have only increased by 1.8% in 2024. Electricity would have been 22.4% cheaper in that scenario, according to the Price Observatory.
