A similar trend is seen in Belgium, where the inflation rate was 12.27 percent in October of 2022 compared to the previous year. By comparison, Luxembourg experienced an inflation rate of 7.4 percent in June of 2022, the highest in the recorded period. The core inflation rate, calculated as the inflation rate excluding the food and energy sectors, reached a new high in September 2022 of 5.2 percent. This is notably lower than the usual inflation rate, indicating how high the inflation rates of the food and energy sectors are.
Sectoral breakdown
A breakdown of consumers' expenditure categories shows that in the Netherlands, in June 2023 there has been a significant increase in the prices of education, food and non-alcoholic drinks, and alcohol and tabacco, each increasing by over ten percent compared to the same month the previous year. Prices in the food sector have soared as a consequence of food shortages and the Russian invasion, reaching an inflation rate of 18.4 percent in the Netherlands in February and March of 2023.Belgium also finds itself in a similar situation, since December 2021, food goods have increased by over 26 percentage points since then. Taking a deeper dive into the food and non-alcoholic beverage sector, the inflation rate reached 18.02 percent in March of 2023, the highest it has been in the recorded period. In Luxembourg, the food and non-alcoholic drinks sector experienced an inflation rate of 11.2 percent in June 2023, whilst the sector of furnishings, household equipment androutine household maintenance reached around seven percent in the same period.
International comparisons
Inflation rates in each of the Benelux countries are comparable to those experienced in the rest of the world, as worldwide inflation reached 9.22 percent in March of 2022. Part of this inflation rate can be explained by the Russia-Ukraine war, and when looking at the forecasted inflation rate adjusted to the war in June of 2022, the Netherlands ranks highest among countries in Western Europe with 8.5 percent, compared to the UK with 6.61 percent.Furthermore, much like the Benelux countries, countries in the European Union are also confronted with escalating food prices, as the inflation rate for food in the EU reached 19.17 percent in March of 2023, which was the highest in the recorded time period and on par with the Netherlands and Belgium, who experienced inflation rates of 17.8 percent and 18.02 percent respectively in the same time period. These rates, however, were not as severe as price increases experienced in the energy sector, which reached 41.1 percent in June of 2022, compared to 23.63 percent for the housing, water and energy sector in Belgium and 11.3 percent in the Netherlands, both in June of 2022.
