Belgium’s Inflation Drops to 2.91% in March, Falling Below 3% for First Time Since August

Brussels, March 28, 2025 – Belgium’s inflation rate declined to 2.91% in March, marking the first time it has fallen below the 3% threshold since August 2024, according to the latest data released by Statbel, the country’s official statistics bureau.

The figure represents a significant drop from 3.55% in February and 4.08% in January, indicating a steady downward trend in inflationary pressures.

The decline in inflation was primarily driven by sharp price reductions in consumer electronics and telecommunications services.

Prices for mobile phone subscriptions plunged by 20.5%, while smartphones (-13.4%), televisions (-12.9%), and computers (-11.1%) also saw notable year-on-year declines.

However, despite the overall easing of inflation, Belgian consumers continue to feel the pinch in several essential sectors.

Cigarettes recorded the steepest increase, with prices surging by 27.2%, followed closely by natural gas (+25.4%), other tobacco products (+23%), household services (+22.6%), and electricity (+20.2%).

Mixed Effects of Inflation Decline

Economists note that the latest figures present a mixed picture for Belgian households. While consumers are benefiting from cheaper electronic goods and mobile services, the rising cost of basic utilities and household expenses offsets much of these gains.

“The fall in inflation is a positive sign, but the figures show that essential expenses, such as energy and services, are still weighing heavily on household budgets,” said Koen De Backer, an economist at the University of Antwerp.

“Lower costs for technology and subscriptions help consumers save, but they don’t fully compensate for the sharp increases in gas and electricity.”

Energy Costs and Excise Duties Impact Prices

The steep rise in energy prices remains a key concern, particularly as natural gas and electricity continue to surge.

Analysts attribute the 25.4% increase in natural gas prices to ongoing supply uncertainties in Europe, which have kept wholesale prices volatile.

Meanwhile, the rise in cigarette and tobacco prices is largely due to higher excise duties implemented by the government as part of its public health policy. The latest tax hikes have made cigarettes nearly a third more expensive than they were a year ago.

Government’s Response and Economic Outlook

The Belgian government has welcomed the drop in inflation but acknowledges that household purchasing power remains under pressure.

Finance Minister Vincent Van Peteghem stated that the administration is closely monitoring energy prices and is considering additional measures to support lower-income households affected by rising costs.

“Our goal is to ensure that all Belgians benefit from the decline in inflation, not just those purchasing electronics or luxury goods,” Van Peteghem said in a statement.

Despite the decline in inflation, Belgium’s economic outlook remains uncertain. Some analysts warn that factors such as geopolitical instability, global commodity prices, and potential wage pressures could push inflation back up in the coming months.

For now, however, Belgian consumers can take some relief in seeing inflation ease, even as they continue to grapple with rising utility bills and everyday expenses.

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members

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