Prices for consumer goods and services rose by 9.7 percent last month compared to March 2021. Inflation has not been this high in the Netherlands since April 1976, figures from Thursday showed. the Central Bureau of Statistics (CBS)† The price increases have been driven by high energy prices, whose rates were 157 percent higher last month than in March last year. As a result, households paid a lot more each month on average for electricity, gas and district heating.
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An important cause of the currency depreciation is the Russian invasion of Ukraine. Fuel prices have risen sharply since the outbreak of the war. According to the CBS, prices for motor fuels in the Netherlands rose by more than 36 percent in March compared to the same month a year earlier.
Last month, motorists paid an average of 2.29 euros for a liter of petrol and 2.12 euros for diesel. For that reason, the cabinet introduced a reduction in excise duties last week, which caused prices to fall slightly. In addition to energy and fuel, foods such as meat and vegetables have also increased in price. They were 6.2 percent more expensive last month than a year earlier.
Last week, Statistics Netherlands published an inflation rate of 11.9 percent based on the European calculation method. This calculation includes a comparison with the inflation of other countries with the eurozone. In contrast to the European calculation, the costs of housing and owner-occupied homes are also included in the Dutch method. For this reason, CBS considers the latter method to be a better indication of price increases.
According to the researchers of the statistical office, collectively agreed wages were 2.4 percent higher in the first quarter compared to the first months of 2021. Despite this, salary development is lagging far behind the increase in consumer prices. These were 7.4 percent higher in the first quarter compared to last year. Wages rose most in the transport and storage sectors. Relatively speaking, wages lagged most behind price increases in the hospitality industry, education and energy supply.