Consumer price index of June 2022
- Inflation in June rises from 8.97% to 9.65%, reaching its highest level since October 1982, when it stood at 9.84%.
- The consumer price index this month increases by 1.03 points or 0.85%.
- Inflation based on the health index goes from 8.34% to 8.72%.
- The smoothed health index was running at 117.58 points in June.
- The high inflation this month, as in recent months, is largely due to high energy prices. Energy currently has an inflation rate of 55.99% and accounts for 4.81 percentage points of the total inflation.
- Furthermore, inflation for food products has also sharply increased in recent months. Inflation for food products (including alcoholic beverages) stands at 8.44% this month, compared to 6.32% last month. The contribution of food products to inflation currently amounts to 1.67 percentage points.
- Core inflation, which does not take into account price evolutions of energy products and unprocessed food, stands at 5.07% in June, compared to 4.43% in May.
- The most significant price increases in June were registered for motor fuels, meat, bundled telecommunication services, bread and cereals, domestic heating oil, the purchase of vehicles, private rents, non-alcoholic beverages and dairy products. However, natural gas, alcoholic beverages, electricity and clothing have had a decreasing effect on the index.
Inflation in June stands at 9.65% compared to 8.97% in May and 8.31% in April. Inflation based on the health index amounted to 8.72% this month compared to 8.34% in May and 7.81% in April. Inflation without energy has increased to 5.26% in June compared to 4.53% last month and 4.06% in April. Core inflation, which does not take into account price evolutions of energy products and unprocessed food, was running at 5.07% in June, compared to 4.43% in May and 4.08% in April.
Inflation for services has risen from 4.31% to 4.65%. Inflation for rents increased from 2.93% to 3.60%. Inflation for food products (including alcoholic beverages) stands at 8.44% this month, compared to 6.32% last month. This inflation for food products has sharply increased in recent months. In November, it was still 0.47%. Inflation for oils, fish, dairy products, bread and cereals and meat has sharply increased in recent months. Inflation for oils stands this month at 20.0%. In November, it was still 3.6%. For both fish and dairy products, inflation is now 11.3% compared to -0.4% and 0.6% respectively in November. For bread and cereals, it stands this month at 10.6% compared to 1.7% in November. Inflation for meat amounts this month to 8.3% compared to 0.8% in November.
The sharp increase in inflation in recent months is largely due to energy products. Energy inflation now stands at 55.99%, compared to 56.80% last month and 54.11% in April. Electricity is now 49.0% more expensive than a year ago. Natural gas is 109.1% more expensive than in June last year. Prices for domestic heating oil, calculated based on a smoothed 12-month moving average, have increased by 65.6% in one year. Motor fuels are 39.2% more expensive than last year.
The high inflation is mainly due to the high energy prices. Energy currently has an inflation rate of 55.99% and accounts for 4.81 percentage points of the total inflation. Food prodcuts, with an inflation of 8.44%, provided an effect of 1.67 percentage points.
The price of natural gas has decreased by 2.57% on average compared to the previous month. Prices for electricity have gone down by 1.54% on average this month.
Some products and services that rose sharply in price compared to June last year are:
|Domestic heating oil||65.6%|
|Other fuels (LPG)||39.2%|
|Other edible oils than olive oil (including frying oil)||28.9%|
Some products and services that fell sharply in price compared to June last year are:
|Other information processing equipment (e.g. smart watch)||-6.5%|
|Mobile telephone services||-5.6%|
|Recording media (e.g.. memory card)||-5.5%|
The main group with the largest upward effect[i] on inflation in June was ‘Housing, water, energy’ with an effect on inflation of 2.90 percentage points. The largest downward effect was measured for ‘Clothing and footwear’ with -0.68 percentage points.
The main group with the largest contribution[ii] to inflation is ‘Housing, water and energy’ with 4.01 percentage points. The lowest contribution to inflation comes from the group ‘Clothing and footwear’, with -0.08 percentage points.
The first inflation estimate according to the European harmonised index of consumer prices (HICP flash estimate) for Belgium amounts to 10.5% for June 2022. The difference in inflation between the CPI and the HICP is mainly due to another calculation method for domestic heating oil.
Comment on the level of the indices
The consumer price index has increased by 1.03 points or 0.85% in June 2022 and now amounts to 122.04 points, compared to 121.01 points in May 2022 (2013=100). The health index has gone up by 0.77 points to 121.02 points in June, compared to 120.25 points in May. The smoothed health index was running at 117.58 points in June. The next central index for public service and social benefits is set at 118.36 points.
The most significant price increases in June were registered for motor fuels, meat, bundled telecommunication services, bread and cereals, domestic heating oil, the purchase of vehicles, private rents, non-alcoholic beverages and dairy products. However, natural gas, alcoholic beverages, electricity and clothing have had a decreasing effect on the index.
The most important trends this month are:
|Motor fuels||+0.345 points||Natural gas||-0.070 points|
|Meat||+0.085 points||Alcoholic beverages||-0.065 points|
|Bundled telecommunication services||+0.075 points||Electricity||-0.065 points|
|Bread and cereals||+0.075 points||Clothing||-0.055 points|
|Domestic heating oil||+0.075 points|
|Purchase of vehicles||+0.075 points|
|Private rent||+0.070 points|
|Non-alcoholic beverages||+0.070 points|
|Dairy products||+0.065 points|
In June, motor fuels became on average 7.1% more expensive. Prices for meat have gone up by 1.9% on average this month. Prices for bundled telecommunication services have increased on average by 2.4% this month. Prices for bread and cereals have gone up by 2.2% this month. In June, domestic heating oil registered an average price increase of 4.9%. The purchase of vehicles became on average 0.9% more expensive this month. Private rents were on average 0.8% more expensive in June. Prices of non-alcoholic beverages have gone up on average by 3.4% this month. Dairy products became on average 2.6% more expensive.
Natural gas has become on average 2.6% less expensive this month. Prices of alcoholic beverages have decreased on average by 2.9%. In June, electricity registered an average price decrease of 1.5%. Prices of clothing have decreased on average by 1.1%.
|2013 = 100||March||April||May||June|
|Consumer price index||119.69||120.09||121.01||122.04|
|Smoothed health index*||115.54||116.52||117.02||117.58|
|* defined in the law of 23 April 2015 on the promotion of employment (Belgian Official Journal of 27 April 2015)|
[i] The effect on inflation shows the changes on the inflation rate by including this product group in the CPI calculation. The effect not only takes the weight of the product group into account, but it also takes into account whether the product group inflation is higher or lower than that of the total expenditure (overall CPI).
[ii] The contribution to inflation of a specific product group shows how much of the change in the total expenditure is due to the price variation of this product group.