Belgian households are paying one-fifth more for groceries compared to a year ago, with supermarket inflation peaking at a record 20.6% in March, according to a new report by consumer
organisation Test Achats. The rise in inflation has been a persistent trend for the past year, with the past three months hovering around 19.5%. The report analysed 3,000 products across seven supermarket chains. The average household in Belgium now spends €521 per month in supermarkets, €89 more than last year, and the increase in food prices is outweighing declining energy prices.
The report found that the increase in supermarket inflation is driven by expensive vegetables, with prices on average 31% higher in March 2023 than the same month the previous year. Iceberg lettuce, cucumber and onions have all increased by 50% or more. Dairy products have also seen significant inflation, with prices rising by 26%, particularly Gouda cheese (+42%), cream (+33%), and semi-skimmed milk (+29%). Bread prices have also risen by 24% over the past year.
Test Achats has been monitoring the evolution of prices in supermarkets to measure food inflation every month for the past year. The organisation is calling on the government to take action, particularly regarding a proposal by Finance Minister Vincent Van Peteghem to increase VAT on dairy products from 6% to 9%. The group argues that basic products such as dairy and bread have been hit hard by rising prices and should retain the current VAT rate.
Test Achats spokesperson Laura Clays stated that “our results clearly show that precisely those categories of basic products have been hit hard by rising prices." The organisation believes that the possibility of reducing VAT to 0% for fruit and vegetables should be explored to alleviate the burden on consumers.