This is announced by the Central Bureau of Statistics (CBS). Such inflation figures have not been seen since the 1980s. In November inflation was still 5.9 percent.
High oil and gas prices in particular pushed inflation up. Energy prices in December were more than 53 percent higher than twelve months previously. Foods, beverages and tobacco rose 2.4 percent in price.
How long?
There is a debate among economists about how long high inflation will last. This extremely high price increase will be temporary according to most estimates. But now De Nederlandsche Bank is taking into account that prices will rise by about 3 percent for three years in a row.
In the meantime, wages are not going up nearly as fast, CBS announced on Thursday. In 2021, wages rose by 2.1 percent, as a result of which employees will not see the increased prices compensated in their salary.
About the threat of long-lasting inflation, ABN Amro economist Nora Neuteboom recently said: “If those high energy costs are passed on, it sets in motion an inflation spiral. If wages subsequently also rise faster to compensate for the increased prices, you will end up in a wage price spiral and it is usually difficult to get out of it.”
Purchasing power
As long as wages lag behind, purchasing power plates will be under pressure. The predictions with Budget Day are outdated due to high inflation. The coalition also assumed lower inflation estimates in its calculation of the coalition agreement.
Listen to the podcast Matter of Cents: