News Economy
Dutch inflation is reaching that of the eurozone
Inflation in the eurozone drops slightly, from 2,6% in May to 2,5% in June. Dutch inflation actually rose last month, from 2,7% to 3,4% according to the European calculation method HICP, according to figures from Eurostat.
According to the Dutch consumer price index (CPI), inflation was 3,2% in June, Statistics Netherlands reports. This is higher than in April and May when inflation was also 2,7% according to the Dutch calculation method. Once again, services made an important contribution to the inflation basket, becoming 4,6% more expensive on an annual basis (in May this was 4,5%). This was also the case at European level; according to the HICP, services inflation was 4,1%.
Food, drinks and tobacco also became more expensive, prices rose 4,4% in that group, compared to 3,1% in May according to CBS figures. However, this seems to be mainly caused by the subgroup of alcoholic beverages and tobacco. There are no disaggregated figures yet for the June quick estimate, but in May the year-on-year price increase in this group was 13,2% and for food and non-alcoholic drinks 1%. The excise duty on tobacco increased considerably in April and the excise duty on alcohol increased in January.
In June last year, a new method came into effect to calculate what was paid for energy. Before that, it was calculated as if everyone had a new contract, which, with the enormous price increases at the start of the war in Ukraine, suddenly deviated enormously from the actual situation. The figures were not adjusted retroactively, which created a distorted picture (especially in the first months). June is the first month in which the price index is calculated in the same way as the year before.
According to the European method HICP, Dutch inflation was 3,4% in June. In May that was 2,7%. The Netherlands was then exactly at the average inflation rate of the eurozone. The Netherlands is now above the average of 3,4% at 2,5%. ECB President Christine Lagarde said in a speech yesterday (July 1) that inflation is expected to return to the 2% inflation target by the end of next year. “We will not deviate from our commitment to bring inflation back to our target for the benefit of all Europeans,” she said. "As the late footballer and coach Bobby Robson said, 'The first 90 minutes are the most important.' In the same way, we will not rest until the game is won and inflation is back to 2%.” According to ECB watchers, this may have signaled that the current interest rate would not be lowered at the next monetary meeting on July 18.
Linda van Eekeres
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