Inflation stabilized this month at 3.18 percent: prices are rising, but also products are cheaper than a year ago

Inflation will go from 3.20 percent in February to 3.18 percent this month. If you paid 100 euros for an average shopping cart in March last year, you now pay 103.18 euros for it.

In one year, fresh seafood and olive oil in particular have become significantly more expensive, by more than 44 and more than 31 percent respectively.

However, some products have also become cheaper compared to last year in March: including electricity (14.9 percent), tea (13.4 percent) and milk (whole milk more than 12 percent, skimmed and semi-skimmed almost 10 percent).

Striking: cocoa and powdered chocolate also became cheaper in March compared to a year earlier, by more than 8 percent. However, cocoa rose to a record price on international markets in March. Perhaps consumers will only notice this later in the store.

Food is now 3.21 percent more expensive than a year ago. This is a decrease for the twelfth month in a row.

The central banks are aiming for an inflation rate of around 2 percent in the medium term as a condition for a wounded economy. So we are now above that, but we are far from the peak in October 2022, when life was on average 12.27 percent more expensive than a year earlier.

According to labor economist Stijn Baert (UGent), also a member of the index committee, this inflation figure is “both good and bad news,” he says on used to be. The bad news is that inflation is (again) higher than the 2.8 percent that the Planning Bureau expected for this month.”

What became more expensive and cheaper?

Including tobacco (+14.4%), household help (+11%), electronics repairs (+10%), veterinarians (+14%) and newspapers and magazines (+14%) more expensive.

The prices of pasta (-5.6%), computers (-8.1%), milk (-12.2%) and electricity (-14.9%) are strong decreased compared to March last year.

How much will our wages increase?

The central index – which determines whether government benefits and wages will increase – has just not been exceeded. Government wages and benefits will therefore not increase for the time being. “There is a very good chance that this will be the case next month,” says Baert. In sectors that regularly index, a 1 to 1.5% wage increase is realistic.