Home Business Dutch inflation is rising again and reaches 1.6 percent

Dutch inflation is rising again and reaches 1.6 percent

Nederlandse inflatie klimt weer omhoog, bereikt 1,6 procent

The latest inflation figures for the Netherlands and the Eurozone were published as flash estimates or are based on incomplete source data. In both cases, inflation has cooled significantly compared to the gigantic peak a year ago. In our country, the annual inflation rate has increased significantly compared to last month, but is still very low. This is due to the considerable energy prices of the past year.

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1.6% inflation in the Netherlands

Today the Central Statistical Office published the preliminary estimate of the Consumer Price Index (CPI) for the month of November. The annual inflation rate is 1.6 percent and a decrease of 1.1 percent is observed compared to the previous month.

The CPI measures the average price change of a basket of goods and services that are representative of the average consumer’s spending.

An annual inflation rate of 1.6 percent reflects a huge decline from the peak of 14.5 percent in September last year. However, the annual inflation rate was significantly lower last month and in September at -0.4 percent and 0.2 percent, respectively.

There is an important caveat that explains the bizarrely low numbers. Energy prices rose sharply in the second half of 2022 and peaked in October. As a result, extremely high inflation was recorded during this period. Since energy prices are currently significantly lower, the annual inflation rate is now quite low.

Without taking energy prices into account, inflation is 4.1 percent. In October it was 5.1 percent.

Inflation in the EU is falling faster than expected

The preliminary inflation figures in the Eurozone were also announced today by the European Statistical Office Eurostat. The annual inflation rate fell further to 2.4 percent last month, while it was 2.9 percent in October. On a monthly basis, consumer prices in the euro area fell by 0.5 percent.

The decline in both annual and monthly inflation exceeded economists’ expectations. They expected annual inflation of 2.9 percent and monthly inflation of -0.2 percent.

The so-called core inflation, i.e. excluding prices for energy, food, alcohol and tobacco, was 3.6 percent. In October, core inflation was still at 4.2 percent.

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