Galloping inflation is back!

Belgian inflation has risen to 7.6%.  The January figure is the highest recorded since 1983, when 7.9% inflation was recorded. 

The inflation is mainly being linked to higher power prices.  Electricity has shot up over 70% in only a year’s time.  Natural gas is 153% more expensive.  A 12-month average for heating fuel still shows a 47% increase.  Diesel and petrol are up over 25% on the year.

Also more restricted forms of inflation are sharply higher.  What is termed “core inflation”, inflation that doesn’t take account of rises in power prices or unprocessed foods, is up 2.98% on the year.  The figure is considerably higher than the European Central Bank’s 2% target.

As if we needed proof, the figures show everyday goods and services are becoming dearer as businesses are passing on higher energy and raw material prices to their customers i.e. other businesses or consumers.

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