Inflation increases from 1.39 % to 1.52 %

Consumer prices
Inflation increases from 1.39 % to 1.52 %

Consumer price index of April 2018

  • Inflation increases from 1.39 % to 1.52 % in April.
  • The consumer price index has increased by 0.32 point or 0.30 % this month.
  • Inflation based on the health index has increased to 1.36 %, up from 1.32 %.
  • The smoothed health index stands at 104.49 points in April.
  • Inflation for services is now running at 1.34 % and has reached its lowest level since June 2010, when it amounted to 1.33 %.
  • The main upward pressure in April came from motor fuels, vegetables, hotel rooms and package holidays abroad. However, electricity, holiday villages and fruit have had a decreasing effect on the index.

The consumer price index stands at 106.69 points in April 2018. It has increased by 0.32 point over the month. Inflation has gone up to 1.52 % from 1.39 %. The health index has gained 0.18 point to 106.89 points. Inflation based on the health index has gone up from 1.32 % to 1.36 %. The most significant price increases in April have been registered for motor fuels, vegetables, hotel rooms and package holidays abroad. These increases were mainly offset by price decreases for electricity, holiday villages and fruit.

The consumer price index has increased by 0.32 point or 0.30 % in April 2018 and now stands at 106.69 points, against 106.37 points in March 2018 (2013=100).

CPI_1graph201804_en.png

The health index has gained 0.18 point to 106.89 points in April, compared to 106.71 points in March. The smoothed health index stands at 104.49 points in April. 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.

The largest upward pressure in April came from motor fuels, vegetables, hotel rooms and package holidays abroad. Electricity, holiday villages and fruit provided the largest downward pressure compared to last month. The most important trends this month are:

Upward: Effect: Downward: Effect:
Motor fuels +0.125 point Electricity -0.060 point
Vegetables +0.090 point Holiday villages -0.035 point
Hotel rooms +0.040 point Fruit -0.030 point
Package holidays abroad +0.030 point    

Prices of motor fuels have increased on average by 3.6 %. Vegetables have become 4.8 % more expensive compared to last month. Prices for hotel rooms increased on average by 5.7 % in April. Package holidays abroad have become 1.7 % more expensive this month.

Electricity has been on average 1.6 % less expensive compared to the previous month. Holiday villages have become 4.8 % cheaper in April. Prices for fruit have decreased on average by 2.2 % in April.

Inflation now stands at 1.52 %, against 1.39 % in March and 1.48 % in February. Inflation based on the health index amounted to 1.36 % this month compared to 1.32 % in March and 1.41 % in February. Inflation without energy has decreased to 1.39 % in April from 1.42 % in March and February. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, was running at 1.38 % in April, compared to 1.57 % in March and 1.60 % in February.

Food inflation stands at 2.63 %, up from 1.72 % in the previous month and 1.43 % in February. Fresh fruit now costs 4.1 % more than in April 2017. Fresh vegetables are cheaper: 2.9 % on an annual basis. Fish and shellfish are 2.9 % more expensive than a year ago. Eggs are 27.5 % more expensive than last year. Prices for non-alcoholic beverages are now 3.9 % higher than last year. Prices for alcoholic beverages have gone up by 1.7 % on an annual basis. Tobacco prices have gone up by 6.5 % compared to April last year. Energy inflation is now running at 2.62 %, up from 1.11 % last month and 2.03 % in February. Electricity is now 1.6 % less expensive than a year ago. Natural gas is 2.9 % more expensive than in April last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 8.0 % in a year. Motor fuels are 5.2 % more expensive than last year. Inflation for services has gone down to 1.34 % from 1.85 %. This is its lowest level since June 2010, when it amounted to 1.33 %. Inflation for rents has increased and now stands at 1.04 %, compared to 0.98 % in March.

The following products and services have registered the sharpest price increases compared to last year in April:

Upward Inflation:

Eggs

27.5 %

Butter

19.8 %

Liquefied petroleum gas (propane, butane)

15.7 %

Postal mail

13.5 %

Other tobacco products

13.3 %

LPG

12.1 %

Olive oil

11.7 %

Newspapers

11.0 %

Other milk products

9.8 %

Soft drinks

8.2 %

Domestic heating oil

8.0 %

Dental care

7.9 %

The following products and services have registered the sharpest price decreases compared to last year in April:

Downward:

Inflation:

Fruit wine (cider, …)

-14.3 %

Software

-7.6 %

Mobile phones

-6.8 %

Pre-recorded media storage

-5.9 %

Mobile telephone services

-5.5 %

Video equipment

-5.4 %

Potatoes

-5.2 %

Cameras

-5.0 %

Computers

-4.4 %

Cookers, hobs and ovens

-4.2 %

Data processing equipment

-3.9 %

Fresh vegetables, excluding potatoes

-2.9 %

The main group with the largest upward effect on inflation in April was "Food and non-alcoholic beverages" with an effect of 0.25 percentage point. The largest downward effect was measured for the groups "Interior decoration and household appliances" and "Communication" (-0.09 percentage point each).

CPI_3graph201804_en.png

 

The main group with the largest contribution to inflation is "Food and non-alcoholic beverages" with 0.46 percentage point. The lowest contribution to inflation was registered by the main group "communication", with -0.02 percentage point.

CPI_4graph201804_en.png

 

CPI_2graph201704_en.png

 

2013 = 100 January 2018 February 2018 March 2018 April 2018
Consumer price index 106.06 106.22 106.37 106.69
Inflation 1.71 % 1.48 % 1.39 % 1.52 %
Health index 106.37 106.54 106.71 106.89
Smoothed health index* 103.93 104.10 104.31 104.49
* defined in the law of 23 April 2015 on the promotion of employment (Belgian Official Journal of 27 April 2015)