May 21, 2022

Taylor Daily Press

Complete News World

Inflation continues to rise |  Standard

Inflation continues to rise | Standard

Energy is still the biggest culprit: gas is 149 percent more expensive than last year, electricity is 50 percent, and motor fuel is 31 percent.

The numbers show that Inflation is slow But certainly also other services and products are starting to have an impact, and it is no longer energy alone that makes life more expensive. For example, food is now 4.63 percent more expensive than it was a year ago. For services (such as hairdressers, cleaners, or taxi drivers) the inflation rate is now 3.20 percent. Those numbers are well above the target level of 2 percent, which is considered healthy. After energy, transportation and food are the most important contributors to inflation.

Reducing the value-added tax on electricity had only a limited impact on inflation. The price of electricity in March was 11.7 percent lower than it was in February. But that doesn’t change the fact that the electric bill is still 50 percent higher than it was a year ago.

For services (such as hairdressers, cleaners or taxi drivers) the inflation rate is now 3.20 percent

The fact that non-energy inflation is starting to rise also increases the risk of a so-called wage-price spiral. After all, the increase in the cost of living in Belgium is automatically offset by the increase in wages. For companies, this means that there are billions of billions affecting their international competitive position. And the National Bank has already warned of this effect, although according to forecasts it will only be temporary.