Inflation in the Netherlands continues to rise and is increasingly deviating from the European average. New figures from the Central Bureau of Statistics (CBS) show that consumer prices were 4.1 percent higher in April than a year earlier. This has the Netherlands the highest inflation of all EU countries that have already reported figures.
Groceries and services considerably more expensive
The increase is mainly caused by higher prices for foods, drinks and tobacco. That category increased by an average of 7.2 percent. Services, such as hairdressers, cultural activities and travel were also considerably more expensive, with an increase of more than 5 percent. Strikingly enough, energy prices have fallen: gas, electricity and fuel became 3.2 percent cheaper on average.
The early May holiday may play a temporary role. Many schools moved their vacation to April because of Easter, which led to an increase in prices for hotels and airline tickets. In 2024 this fell in May, which artificially rises the current inflation figure.
Another driver of inflation is the earlier excise duty on tobacco. Although it was already being implemented in 2023, the price -increasing effect is still working. That is because stores first sold their old, cheaper stocks. Despite the relatively small weight of tobacco in the inflation calculation, the rise was large enough to exert influence. The annual rent increase also plays a role. With an average increase of 5 percent, it contributes heavily in the total inflation figure.
The effects of the rates war of American President Trump are not too bad for the time being. The European reaction to also raise rates on American products is a reason for this. Due to the counterattack, the value of the US dollar decreases, which drains inflation pressure on the euro.
The Netherlands continues to get out of pass
The differences within Europe are great. Belgium saw inflation fall from 3.6 to 3.1 percent, while Germany remained stable at 2.2 percent. The Netherlands, on the other hand, is substantially out of step with 4.1 percent. Only Estonia and Latvia record a higher figure.
Inflation would come closer to the European average of 2.5 percent as temporary effects such as vacations are not taken into account. So there is a good chance that inflation will be somewhat lower in May, thanks in part to the loss of the excise effect. Yet it is clear: the Dutch consumer remains confronted with substantial rising prices for the time being, despite falling energy prices and a stable European trend.
Source: https://newsbit.nl/inflatie-in-nederland-loopt-opnieuw-op-hoogste-stijging-binnen-de-eurozone/
