Inflation decreases from 2.13 % to 1.71 %

Consumer price index of January 2018

• Inflation decreased from 2.13 % to 1.71 % in January.
• The consumer price index has increased by 0.31 point or 0.29 % this month.
• Inflation based on the health index has declined from 2.02 % to 1.64 %.
• The smoothed health index amounts to 103.93 points in January.
• The decrease in inflation is mainly due to the decrease of the Contribution Energy Fund in Flanders.
• The most significant price increases in January have been registered for natural gas, motor fuels, mineral water, soft drinks and juices, additional health insurance contribution, alcoholic beverages, holiday villages and vegetables. However, electricity, hotel rooms and travels abroad have had a decreasing effect on the index.

The consumer price index amounts to 106.06 points in January 2018. It has increased by 0.31 point over the month. Inflation has dropped from 2.13 % to 1.71 %. The health index has gained 0.22 point to 106.37 points. Inflation based on the health index has decreased from 2.02 % to 1.64 %. The most significant price increases in January have been registered for natural gas, motor fuels, mineral water, soft drinks and juices, additional health insurance contribution, alcoholic beverages, holiday villages and vegetables. These increases were mainly offset by price decreases for electricity, hotel rooms and travels abroad.

The consumer price index has risen by 0.31 point or 0.29 % in January 2018 and now amounts to 106.06 points, compared to 105.75 points in December 2017 (2013=100).

The health index has gone up by 0.22 point to 106.37 points in January, compared to 106.15 points in December. The smoothed health index amounts to 103.93 points in January. The central index for public service and social benefits, set at 105.10 points, has not been exceeded. The last time the central index was exceeded was in May 2017.

Products with the largest increasing effect in January were natural gas, motor fuels, mineral water, soft drinks and juices, additional health insurance contribution, alcoholic beverages, holiday villages and vegetables. Electricity, hotel rooms and travels abroad provided the largest downward pressure compared to last month. The most important trends this month are:

Prices of natural gas have increased on average by 3.2 %. Motor fuels became on average 1.7 % more expensive. Prices for mineral water, soft drinks and juices have increased on average by 4.1 % in January. In January, consumers had to pay 3.1 % more for additional health insurance contributions. Alcoholic beverages were on average 2.6 % more expensive over the month. After seasonal adjustment, prices of holiday villages rose on average by 4.6 %. Prices of vegetables have increased on average by 1.5 %.

Electricity became in January 4.2 % cheaper, mainly because of the decrease of the Contribution Energy Fund. Hotels have become on average 3.8 % less expensive this month. Travels abroad have been on average 1.7 % cheaper in January.

Inflation now amounts to 1.71 % compared to 2.13 % last month and 2.07 % in November. Inflation based on the health index amounted to 1.64 % this month compared to 2.02 % in December and 1.81 % in November. Inflation without energy has gone down to 1.55 % in January compared to 1.65 % last month and 1.39 % in November. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, amounts to 1.65 % in January, compared to 1.68 % in December and 1.44 % in November.

Inflation of food now amounts to 2.20 %, compared to 2.10 % last month and 1.64 % in November. Fresh fruit now costs 3.7 % more than in January 2017. Fresh vegetables are also cheaper: 8.0 % on an annual basis. Fish and shellfish are 3.0 % more expensive than a year ago. Oils and fats are 12.0 % more expensive than last year. Especially the price of butter is higher (inflation of 22.3 %). Non-alcoholic beverages now cost 4.8 % more than last year. For alcoholic beverages, consumers now have to pay 2.0 % more than in January last year. Tobacco prices have gone up by 5.1 % compared to January last year. Energy inflation is now running at 2.99 %, compared to 6.49 % last month and 8.16 % in November. Electricity is now 1.4 % less expensive than a year ago.

Natural gas is 5.7 % more expensive than in January last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 15.2 % in one year. Motor fuels are 2.6 % more expensive than last year. Inflation for services has gone down to 1.91 % from 2.09 %. Inflation for rents has slightly increased and now stands at 1.16 %, compared to 1.13% in December.

The main group with the largest upward effect on inflation in January was hotels, cafés and restaurants with an effect of 0.14 percentage point. The largest downward effect was measured for the group recreation and culture (-0.09 percentage point).

The main group with the largest contribution to inflation is housing, water and energy with 0.39 percentage point. The lowest contribution to inflation was registered by the main group communication, with 0.00 percentage point.