Economist Koen Schoors thinks inflation problem will ease soon: "Present inflation is overrated"

"The present inflation pace in Belgium is extremely high, but it is a little bit overrated." Speaking is economist Koen Schoors of the Ghent university UGent. As a result, the professor expects the inflation problem to ease in the coming months.  

Koen Schoors was speaking in the current affairs programme "Terzake" on the VRT's second channel Canvas. On Friday, it turned out that inflation had climbed to 12.27 percent in October: prices for a whole range of products were 12.27 percent up on October 2021. It's especially energy and food that are the contributory factors. The figure is the highest since the early seventies. 

"This is extremely high, of course. A lot is caused by the energy price. But it is going down now, at least partly. We expect that part of the inflation figure to drop substantially in the future," says Schoors. 

We should not be afraid that inflation will climb to a staggering 17 percent like in the Netherlands, adds the professor. On the contrary, he expects the problem to ease. "I think inflation is already being overestimated at present. This is because energy suppliers are still upping their prices while their cost is dropping. We see that both gas and electricity are getting cheaper on the international markets. So that part of the inflation should go down." 

The price hike of the past 12 months can easily be explained: demand went up substantially after corona. Supplies could not follow. On top of that, the war broke out in the Ukraine which aggravated the problems, explains Schoors.    

 

Top stories