Supermarket Inflation Drops to Lowest Level Since 2021, Though Price Rises Persist

Supermarket inflation in Belgium has fallen to its lowest point since December 2021, with prices rising by just 0.27% in May, according to consumer organization Testaankoop. This marks the first time the inflation rate has dipped below 1% since late 2021, when prices began their significant ascent.

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This is good news for families, although we fear that the low inflation rate will be short-lived.

While the news is positive for household budgets, Testaankoop spokesperson Laura Clays cautioned that this low inflation rate might be temporary. She clarified that prices are not falling but are increasing at a slower pace. Testaankoop monitors nearly 3,000 products across six major supermarket chains to calculate its monthly inflation figures.

Despite the overall slowdown, certain product categories continue to experience substantial price increases. Meat remains a notable example, with beef prices up 8% and lamb up 18% compared to a year ago. Coffee products, such as coffee pads and ground coffee, have also seen significant rises of 11% and 7%, respectively. Other items like cod, blueberries, chocolate, and beer have also become more expensive.

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The inflation rate is really very low. For the first time since December 2021, when prices started to rise sharply, the inflation rate is again below 1 percent.

Conversely, vegetables have become cheaper, with an overall cost reduction of 5% due to good harvests. Carrots are down 10%, iceberg lettuce 6%, and onions 3%. Potatoes have seen a significant price drop, with a kilogram now costing less than 2 euros on average. However, Clays pointed out that potato prices are still 37% higher than in January 2022. Testaankoop attributes the earlier, sharp price increases since late 2021 to the war in Ukraine, which drastically raised energy and transport costs and disrupted the supply of essential goods like wheat and grains.

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Many people are happy with this price drop, but if you compare the price of a kilo of potatoes with that of January 2022, you see that a kilo of potatoes has become as much as 37 percent more expensive.