Belgium Inflation Accelerates to 3.97% Amid Energy and Food Price Pressures

Belgium's inflation rate has accelerated to 3.97% year-on-year in August, up from 3.56% in July, according to official data. This marks the second consecutive monthly increase and brings inflation back to levels not seen since early 2024.

The main drivers of this rise are higher energy costs and food prices, with base effects from last year's energy price declines and a rebound in global food commodity prices contributing to the acceleration.

Belgium's inflation rate is above the eurozone average, which stood at 2.2% in July, due in part to the country's wage indexation system, which automatically adjusts wages to inflation, creating a feedback loop that can sustain higher price growth.