Belgium’s food prices have surged by an average of 27% over the past three years, leaving consumers grappling with higher grocery bills than many of its European neighbors, according to a recent study from the IESEG School of Management.
Based on Eurostat data as of October 2024, Belgium’s food inflation is significantly higher than in France, Luxembourg, and the Netherlands, although it remains slightly lower than in Germany.
The study highlights that food prices in Belgium are still almost a third higher than they were in October 2021, just before the rapid rise in inflation that swept across Europe.
In comparison, food prices have increased by 22.9% in France, 21.4% in Luxembourg, and 24.9% in the Netherlands. However, the increase in Belgium’s food prices is still relatively lower than in Germany, where the cost of food has risen by 31%.
The report also reveals stark contrasts across the Eurozone. Finland has seen the slowest food price growth over the past three years, at just 20.1%, while Slovakia has experienced the largest price hikes, with food prices climbing by 45.2%.
Eric Dor, director for economic studies at IESEG, explained that Belgium’s food inflation is the result of a combination of international and national factors.
“The international context is well known and explains why food prices, but also other types of goods, have much increased in all countries,” Dor said.
He noted that the global disruptions caused by the COVID-19 lockdowns, including supply chain interruptions and port congestion, triggered shortages in key commodities, driving up prices.
The impact of the Russian invasion of Ukraine further exacerbated the situation, Dor explained. The war disrupted the global supply of affordable Russian gas, which caused energy prices to skyrocket.
The subsequent rise in energy costs significantly increased the production cost of fertilizers and transportation, thereby pushing food prices even higher.
On the national front, Belgium faced some of the steepest increases in energy prices within the European Union, further inflating production, transport, and distribution costs. Dor also pointed out that Belgium’s wage indexation scheme, which adjusts wages in response to inflation, contributed to the rapid rise in food prices.
“The reaction of wages to rising inflation was quicker in Belgium than in most other countries,” he said. This accelerated wage increase boosted production and distribution costs, which ultimately led to higher retail prices for consumers.
The price of olive oil has seen the most dramatic spike, with an astonishing 100.6% increase in cost since October 2021. In contrast, neighboring Luxembourg saw a 68% rise, France 78.4%, and the Netherlands 81.3%.
Even though global olive oil prices are expected to decrease following a stronger harvest this year, Belgian consumers have already been hit hard by the high prices.
Other food items that have seen significant price hikes in Belgium include potatoes, which have risen by 48.3%, eggs, which have jumped 42.1%, and butter, which has gone up by 40.9%.
The price of eggs has been particularly volatile, partly due to a bird flu outbreak in the United States and stricter animal welfare regulations in Belgium.
In general, many staple foods have become significantly more expensive, including margarine (+38.9%), sugar (+35.4%), certain vegetables (+35.3%), and flour (+35%). The only food category with a relatively modest price increase is dried fruit and nuts, which have risen by 7.2%.
As inflation continues to put pressure on consumers’ wallets, the food price crisis in Belgium serves as a stark reminder of the complex global and national factors that contribute to rising living costs.
