Inflation increases from 2.65% to 2.97%

Consumer price index of February 2017

• Inflation in February has gone up from 2.65% to 2.97%.
• The consumer price index increased by 0.39 point or 0.37% this month.
• Inflation based on the health index has increased to 2.47%, up from 2.18%.
• The main upward pressure in February came from vegetables, domestic heating oil, natural gas, cut flowers, package holidays in Belgium, electricity, rents and fresh fruit. The products with the largest downward pressure were package holidays abroad.

The health index has gone up by 0.41 points to 105.06 points in February, compared to 104.65 points in January. The smoothed health index stood at 102.34 points in February. The central index for public services and social benefits, set at 103.04 points, has not been exceeded over the month. The last time the central index was exceeded was in May 2016.

Products with the largest increasing effect in February were vegetables, domestic heating oil, natural gas, cut flowers, package holidays in Belgium, electricity, rents and fresh fruit. Package holidays abroad provided the largest downward pressure compared to last month. The most important trends this month are:

Vegetables have become on average 4.5% more expensive. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have gone up by 4.3%. Prices for natural gas have increased on average by 2.5%. Prices for cut flowers were up on average by 6.9%. As every year in February, higher prices were registered especially for roses due to Valentine's Day. Package holidays in Belgium have become on average 9.5% more expensive this month. Prices of electricity have increased on average by 0.6%. Rents have gone up by 0.3% on average. Prices for fresh fruit increased on average by 2.3% this month.

After seasonal adjustment, package holidays abroad have been on average 2.1% less expensive this month.

Inflation stands now at 2.97% compared to 2.65% in January and 2.03% in December. Inflation based on the health index also increased to 2.47% compared to 2.18% in January and 1.78% in December. Inflation without energy has decreased to 1.73% in February compared to 1.74% last month and 1.65% in December. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, amounts to 1.49% in February, compared to 1.54% in January and 1.53% in December.

Food inflation is now up to 2.33% from 2.01% last month and 1.94% in December. Fish and shellfish prices are now 8.4% higher than in February last year. Within this product group, fresh fish and shellfish have increased in price by respectively 13.5% and 5.1% compared with February 2016. Oils and fats have gone up by 6.5% in a year. Fresh fruit now costs 1.6% more than in February 2016. Fresh vegetable prices are also on the rise: 19.0% on an annual basis. Prices for non-alcoholic beverages are now 1.4% higher than in February 2016. For alcoholic beverages, consumers now have to pay 0.2% less than in February last year. Tobacco now costs 5.1% more than in February last year.

Energy inflation is now running at 14.80%, up from 11.18% in January and 5.49% in December. This is the highest inflation level for this product group since December 2011, when it amounted to 13.77%. Electricity is now 21.2% more expensive than a year ago. Natural gas is 2.6% more expensive than in February last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have declined by 0.3% over a year. Motor fuels are now 21.7% more expensive than a year ago. Inflation for services has decreased to 2.17% from 2.39%. Especially telecommunications services (5.3%), transport services (3.4%) and restaurants and bars (2.9%) experienced a high inflation rate. Inflation for rents increased to 1.08% from 0.94% last month.