by Niels Saelens
published on Tuesday October 1, 2024 has 20:17 •
4 min read
Key information
- In September, inflation in Belgium was more than twice the euro zone average.
- In twelve of the twenty member states of the monetary union, inflation has fallen below the ECB’s target.
While in many member states inflation fell below the ECB’s 2% target last month, in Belgium it was more than twice as high. This is what emerges from the latest report on inflation from the European statistical office Eurostat. Belgium has now held the title of inflation champion within the monetary union for six consecutive months.
In the news : According to Eurostat’s calculation method, inflation in Belgium in September was more than twice the European average.
- According to Eurostat, inflation in the eurozone stood at 1.8% (year-on-year) last month. In Belgium, on the other hand, prices increased by an average of 4.5% compared to September 2023. This is even a slight increase compared to August, when inflation reached 4.3%.
- According to the inflation report from Statbel, the Belgian statistics office, inflation also increased, rising from 2.86% in August to 3.06% in September.
- Why is there a difference between Eurostat and Statbel inflation figures? Eurostat’s calculation method differs from that of national statistical offices. Eurostat uses the harmonized consumer price index (HICP), whose composition of the basket of goods and services differs from that of the national consumer price index (CPI).
- The HICP is designed to be consistent across member states, while national indices like the CPI can better reflect local economic realities.
In almost all Member States, inflation falls below 2%
Noticed : Inflation in Belgium is remarkably high compared to other eurozone member states. In September, in twelve of the twenty countries, the inflation rate was below the ECB’s target.
- Only three other countries saw their inflation exceed 3%: Estonia (3.2%), the Netherlands (3.3%) and Greece (3%).
- Ireland stands out with inflation of just 0.2%, the lowest rate among member states last month.
- In Lithuania (0.4%), Slovenia (0.7%), Italy (0.8%), Luxembourg (0.8%) and Finland (0.8%), inflation is also fallen below the symbolic bar of 1%.
And also : The likelihood that the European Central Bank (ECB) will cut rates again in October for the third time this year is increasing.
- ECB President Christine Lagarde suggested in a speech to the European Parliament that falling energy prices in recent months have contributed significantly to weakening inflation. “Although inflation may increase in the fourth quarter, we expect it to return to the 2% target in the medium term,” she added.
