Inflation at highest point in almost fifty years due to energy and rents

Inflation in the Netherlands is above 10 percent for the first time since September 1975. Dutch prices were 10.3 percent higher last month than a year earlier. It turns out from numbers which the Central Bureau of Statistics (CBS) published on Thursday. More expensive energy, among other things, is a major contributor to high inflation.

Compared to July last year, energy has become 108 percent more expensive. As a result of the war in Ukraine, gas in particular has risen sharply in price. The rent increases as of 1 July also affect the inflation figure. According to Statistics Netherlands, rents are now 3 percent higher than a year ago, the maximum permitted increase. This year, that maximum has been increased to 3.3 percent, partly due to strong inflation. Food was 12.3 percent more expensive in July than a year ago, mainly due to price increases for grain, dairy and sugar.

Earlier, CBS reported Dutch inflation of 11.6 percent for July, based on the European calculation method, intended to compare inflation between EU countries. Statistics Netherlands itself bases its inflation calculation on the Dutch consumer price index (CPI). The main difference between the two calculation methods is the composition of the package of goods and services.

Also read: Inflation in the Netherlands higher than in the eurozone: consequence of the liberalized gas market here

ttn-32