Inflation at 0.29 percent in April

Figures released by the Federal Economy Department show that inflation in Belgium rose by 0.29 percent over the past month. 

 

The retail price index last rose by a modest 0.09 percent in October 2014. Since then inflation had been negative for five consecutive months.

 

The lowest figure of -0.65 percent was recorded in January with an inflation figure of -0.40 percent being recorded in March. In April prices started to rise again, albeit by just 0.29 percent.

 

According to the Federal Economy Department the return to positive inflation is primarily due to the petering out of the effect that the previous federal government’s temporary reduction of VAT on electricity from 21 percent to six percent has on inflation. The sharp rise in the price of certain types of vegetables has also served to push up inflation.

 

Meanwhile, Koen De Leus of the bank and insurance company KBC says that the return to positive inflation is a consequence of measures taken by the European Central Bank to kick start the economy of the Eurozone.