The Federal Public Service Economy’s Price Observatory in Belgium has published its annual report, highlighting an intriguing trend. Despite the general inflation rate in Belgium being lower in the past year than in neighboring countries, the cost of food in Belgium has experienced a more substantial increase.
The total inflation in Belgium last year was measured at 2.3 percent according to the harmonized index (HICP), a tool used for making comparisons with other countries. While this places Belgium’s inflation rate lower than Germany’s (6.0%), the Netherlands’ (4.1%), and France’s (5.7%), it is essential to note that this was largely due to the varying developments in energy prices in each country. In Belgium, the average annual price drop for energy was 28.4 percent.
However, when it comes to food prices, Belgium saw a faster increase than its neighboring countries. The average increase was recorded at 12.7 percent. According to the Price Observatory, this is the highest food inflation rate Belgium has ever seen. The highest increase (+16.9%) was observed in the first quarter of 2023. But from the second quarter onwards, the food inflation rate began to decrease gradually, settling at 8.3 percent in the fourth quarter.
While 2023 saw a historically high level of food inflation in neighboring countries as well, their rates were still slightly lower than Belgium’s. The price increases ranged between 11.3 percent in the Netherlands and 11.7 percent in Germany.
Moreover, the inflation rate for services in Belgium in 2023 was at 6.3%, which was higher than that in neighboring countries. This higher inflation rate is primarily attributed to sectors such as restaurants, housing, and hospital services.
