Belgium: Inflation slows in June from the prior month
Latest reading: Harmonized consumer prices increased 3.3% on a year-on-year basis in June, following a 4.0% rise in the previous month.
Relative to the previous month’s data, there were reduced price pressures for food and non-alcoholic beverages (-0.1% in annual terms vs +0.9% in May), transportation (+6.1% vs +8.5% in May), housing and utilities (+6.6% vs +7.2% in May) and restaurants and hotels (+3.7% vs +4.7% in May). In contrast, price pressures were higher for recreation in June (+5.4% vs +5.1% in May).
Meanwhile, consumer prices were up 3.4% on a year-on-year basis in June, following a 4.1% rise in the prior month.
Finally, harmonized consumer prices were down 0.12% in June in month-on-month terms, following a 0.33% fall in the prior month.
Panelist insight: KBC’s economists commented on the outlook:
“Looking ahead, we continue to forecast Belgian headline inflation to average 3.2% this year before moderating again and reaching 2.1% in 2027. On the one hand, lower futures prices for oil and gas compared to a month ago imply lower expected energy price inflation. On the other, we now see indirect effects contributing somewhat more to core inflation over the next months than previously expected.”