News Economy
Inflation without energy is declining
When energy is ignored, inflation decreases, according to CBS figures. In September, inflation without energy was 5,5%, in October 5,1% and in November 4,1%. In February and March of this year this was still 8,1%. Food inflation is also falling further.
When energy is taken into account, we see that in the CBS figures, last month's deflation (-0,4%) has converted back into inflation (+1,6%). This is on an annual basis, according to the quick estimate from Statistics Netherlands, consumer prices were 1,1% lower in November than in October. Statistics Netherlands notes that due to seasonal influences (for example more expensive airline tickets in the high season), month-on-month developments are often more volatile than year-on-year.
Energy has had a major influence on the inflation rate for some time. In addition, the inflation figure is clouded by the new calculation method of Statistics Netherlands, which was introduced in June of this year. This is now based on the actual energy contracts, while previously the prices of new contracts were used. However, the CBS figures have not been adjusted retroactively. According to the CBS calculation, energy (including fuels) was 25,3% cheaper in November than a year earlier. In October, energy was 40,2% less expensive on an annual basis than a year earlier.
Inflation for the food, beverages and tobacco group is also decreasing, from 8,7% in October to 7,3% in November.
Eurozone inflation is declining
According to the HICP, with which inflation figures within Europe are compared, inflation in November was 1,4%. In October this was -1,0% and in September -0,3%. Inflation in the entire eurozone actually decreased, from 2,9% in October to 2,4% in November. Inflation in Belgium is the lowest at -0,7%. Inflation in Germany is 2,3% and in France 3,8%.
Inflation in food, alcohol and tobacco is also declining in the eurozone. From 8,8% in September, 7,4% in October, to 6,9% last month. It is striking that unprocessed food became more expensive on an annual basis. In October, unprocessed food was 4,5% more expensive than a year earlier, and in November this was 6,4%.
Linda van Eekeres
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