News Economy
Deflation due to significantly lower energy prices
According to the quick estimate by Statistics Netherlands, there was deflation in the Netherlands in October (-0,4%). This is because energy prices have fallen significantly compared to a year earlier. If energy is not taken into account, the inflation rate is 5,1% (5,5% in September).
In the first half of 2023, inflation without energy and motor fuels was higher than now, with a peak of 8,1% in February and March, according to Statistics Netherlands.
Energy, including motor fuels, was 40,1% cheaper in October than a year earlier. In September this was 38,2% on an annual basis. The food, beverages and tobacco category rose 8,7% in price in October. Last month it was still 10%.
The low inflation rate has as we wrote before, also has to do with a new calculation method from Statistics Netherlands since June. Then CBS started calculating with the actual energy contracts instead of just the rates for energy contracts that had not been concluded.
euro zone
Eurozone inflation (HICP) was 2,9% in October. In September that was still 4,3%. According to the HICP, inflation in the Netherlands was -0,3% in September and -1% in October. Only in Belgium is there also deflation, at -1,7%.
Linda van Eekeres
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