News Inflation
Inflation above 10 percent, energy prices rising sharply
Inflation was 10,3% higher in July compared to the same month last year. Energy and house rent in particular rose sharply. It is the first time since September 1975 that inflation has exceeded 10 percent. In June inflation was 8,6%.
Despite the reduction in VAT, the energy price has risen sharply. In July energy was 108% more expensive than a year earlier, in June the annual price increase was 84%. Since 1 June, the VAT on energy has been reduced from 21 to 9%. This reduction will last until the end of the year.
Consumers had to pay 12,3% more for food in July than a year ago. Grain and dairy products, sugar and confectionery such as ice cream contributed the most to inflation. Food inflation stood at 11,2% in June.
Motor fuels
Statistics Netherlands also reports that the price developments of motor fuels have a depressing effect on inflation. These were 25 percent more expensive in July than a year earlier, in June it was still 35%. In July, a liter of Euro 95 when refueling still cost an average of €2,21, in June that was €2,35. A liter of diesel fell from €2,14 in June to €2,07 in July.
Max van der Heyden
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