The rate at which prices are rising in the Netherlands increased further in May compared to a month earlier. This was mainly because energy prices fell less sharply last month than in April. Prices of food, beverages and tobacco also rose again, albeit less sharply than in April. Prices of industrial goods also increased.
The Central Bureau of Statistics (CBS) reports in a quick first estimate that inflation amounted to 6.1 percent last month. In April, inflation unexpectedly increased to 5.2 percent on an annual basis, from 4.4 percent in March. This was mainly due to a less pronounced fall in energy prices, but more expensive food also played a role. At the peak in September last year, inflation was still 14.5 percent.
The average price increase of products in supermarkets was 12.8 percent last month, compared to 13.2 percent in April. Prices of industrial goods rose by 8.9 percent, against 8.3 percent a month earlier. Energy, including motor fuels, on the other hand, became 18.5 percent cheaper after a price drop of more than 22 percent in April. Services became 6.1 percent more expensive, after a price increase of 6 percent a month earlier.
According to the European method even more inflation
In order to make a good comparison with other European countries, Statistics Netherlands also provides inflation figures according to the European method, which does not take housing rents into account, among other things. The inflation then amounted to 6.8 percent, compared to 5.8 percent in April.
Later in the day, the European statistics agency Eurostat will release inflation figures for the entire eurozone. In April, annual inflation in the euro area was 7.0 percent. Earlier this week it appeared that inflation in Germany, France and Spain did cool down in May.
As inflation is still above the 2 percent target, the European Central Bank (ECB) is expected to continue raising interest rates. ECB policymakers will meet again in mid-June. An interest rate hike of a quarter of a percentage point is generally expected to reduce inflation.
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss a thing of the stars.