As a result, household savings fell by €5 billion to €17.1 billion in the fourth quarter of last year, Statistics Netherlands reported on Tuesday.
Due to the increased prices, average consumption per household increased, at the expense of the so-called ‘free savings’. For households this is the disposable income minus all consumption expenditure.
Decrease is trend
In the fourth quarter of 2021, disposable income grew by €4.6 billion compared to the same months in 2020. At the same time, spending in those same months increased by €9.6 billion.
It is already the third consecutive quarter that savings are lower than a year earlier. In 2020, households spent much less because of the corona restrictions that were in place at the time, people stayed at home much more.
Prices increased by 4.2% in the fourth quarter of 2021 compared to the end of 2020. Energy and water prices in particular rose by €1.3 billion, contributing to the increase in consumer spending.
Gas duration
At the end of last year, consumers spent €800 million extra on fuels compared to an annual basis.
Statistics Netherlands did see a decline in the number of new passenger cars sold. Consumers also spent less on food during the corona pandemic.
According to Statistics Netherlands, this is offset by ample compensation for spending in a short period of time in restaurants and cafes that reopened at the end of last year.
Consumers also put a lot of money into their own homes during the pandemic. The prices of building materials also rose. And private individuals collectively bought far fewer shares. In addition, at the end of 2021, households took out more home mortgages than they had repaid.