Belgium: Inflation rises to highest level in more than two years
December 29, 2010
In December, consumer prices rose 0.4% over the previous month, which was above the 0.1% increase observed in November. The reading was the strongest price increase since May, mainly reflecting higher prices for fuels (+4.3% month-on-month) and for heating oil (+7.2% mom). Annual inflation rose from 2.9% in November to 3.1% in December, which represented the highest level since November 2008. Meanwhile, HICP inflation (based on the harmonised index of consumer prices) jumped to 3.4% in December (November: 3.0%), pushing annual average harmonised inflation to 2.3%. The Central Bank expects HICP inflation to average 2.0% this year and 1.9% in 2011.
Author: Ricardo Aceves, Senior Economist