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Energy prices push inflation towards zero
Inflation in the Netherlands fell to 0,2% in September. This is mainly due to the enormous drop in energy prices. Compared to August, prices fell by 0,4%. Food is still 10% more expensive than a year ago. This is evident from the quick estimate by Statistics Netherlands.
In August, inflation according to the consumer price index (CPI) was still 3% and in July it was 4,6%. The decline in inflation is mainly due to lower energy prices (38,2% lower on an annual basis in September). The low inflation is also due to a new calculation method from Statistics Netherlands, which has only taken into account real (newly concluded and current) energy contracts since June. Until then, the calculations assumed that everyone had a new energy contract. As long as the differences were not that big, this was not a problem. But when energy prices started to rise enormously, this calculation method gave a distorted picture, inflation seemed higher at that time than it actually was. Now the reverse effect can be seen.
Food, beverages and tobacco were the products that increased in price the most year-on-year in September with 10%. In August this was 10,2%. This is followed by services and industrial goods (excluding energy and fuels) with 4,6% and 4,5% respectively.
Deflation according to European calculation method
According to the HICP, which measures inflation in Europe, there is even deflation in the Netherlands. The Netherlands has the lowest inflation of the eurozone countries in September at -0,3% (was 3,4% in August). Belgium follows next with 0,7%. Inflation in the entire eurozone fell from 5,2% in August to 4,3% in September.
Linda van Eekeres
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