Belgium: "Inflation rate of 0.0 per cent in 2009"
The Federal Planning Bureau (FPB) has lowered its inflation prognosis for 2009 to 0.0%. In July the FPB spoke of an inflation rate this year of 0.3%.
The inflation rate is reflected by how much consumer goods prices increase and decrease. In the first four months of the year there was positive inflation in Belgium, but since May inflation has sunk below zero. The decrease shows that the prices of consumer goods are dropping. There has been a considerable drop in the price of energy.
The Federal Planning Bureau presupposes six months of negative inflation this year. The negative inflation is expected to continue through to the end of October before turning upward, according to the latest prognosis by the FPB.
By the end of 2009 the annual inflation will equal out at 0%, according to predictions. This means that prices will be about the same as they were the end of 2008.
In 2008 inflation was at 4.49% in Belgium and in 2007 it was 1.82%. For 2010 the Federal Planning Bureau expects an annual inflation rate of up to 1.6%.