Inflation down to 2.28% from 2.97%

The health index went up by 0.26 point to 105.32 points in March, compared to 105.06 points in February. The smoothed health index stood at 102.67 points in March. The central index for public services and social benefits, set at 103.04 points, has not been exceeded this month. The last time the central index was exceeded was in May 2016.

Products with the largest increasing effect in March were fruit, electricity, bundled telecommunication services, domestic heating oil and restaurants and cafés. Package holidays in Belgium, vegetables, motor fuels, flowers and plants and holiday villages provided the largest downward pressure compared to last month. The most important trends this month are:

Fruit became on average 9.6% more expensive. Prices of electricity have increased on average by 0.9%. Bundled telecommunication services have become on average 1.1% more expensive this month. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have gone up by 1.7%. Visits to restaurants and cafés have become on average 0.3% more expensive.

Package holidays in Belgium have become on average 10.8% cheaper. Prices for vegetables decreased on average by 2.2%. Motor fuels have become on average 0.9% less expensive this month. Prices for flowers and plants have decreased on average by 3.0% this month, as a result of the increase last month due to Valentine's day. After seasonal adjustment, holiday villages have been on average 2.8% less expensive this month.

Inflation now stands at 2.28% compared to 2.97% last month and 2.65% in January. Inflation based on the health index also went down and now stands at 1.79% compared to 2.47% in February and 2.18% in January. Inflation without energy has gone down to 1.32% in March, compared to 1.73% last month and 1.74% in January. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stood at 1.21% in March, compared to 1.49% in February and 1.54% in January.

Food inflation is now down to 1.47% from 2.33% last month and 2.01% in January. Fish and shellfish prices are now 8.2% higher than in March last year. Within this product group, fresh fish has increased in price by 13.1%, compared with March 2016. Oils and fats have gone up by 6.4% in a year. Fresh fruit now costs 5.7% less than in March 2016. Fresh vegetable prices are also on the rise: 13.3% on an annual basis. Prices for non-alcoholic beverages are now 1.5% higher than in March 2016. For alcoholic beverages, consumers have now to pay 1.1% more than a year ago. Tobacco now costs 5.1% more than in March last year.

Energy inflation is now running at 11.12%, down from 14.80% last month and 11.18% in January. Electricity is now 11.1% more expensive than a year ago. Natural gas is 4.9% more expensive than in March last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 3.7% in a year. Motor fuels are now 18.3% more expensive than a year ago. Inflation for services has decreased to 1.57% from 2.17%. Especially transport services (3.9%) and restaurants and cafés (2.4%) experienced a high inflation rate. Inflation for rents decreased to 1.05% from 1.08%.