News CPB
No more purchasing power with new cabinet due to inflation
Due to the sky-high inflation, purchasing power will not increase with the policy from the new coalition agreement, which was the intention. This is apparent from the calculation of the Central Planning Bureau (CPB). The CPB also reports that the economic effects of the climate and transition fund and the nitrogen fund are uncertain.
Purchasing power is also not falling, which would be the case without new policy. The CPB has the passing on the coalition agreement published today (Tuesday 11 January). It is usual for the plans for the presentation of the agreement to be calculated, but that was not the case this time.
The policy package in the coalition agreement improves static purchasing power by 0,4% on average per year (until 2025). However, the high inflation in the baseline in 2022 and 2023 has a depressing effect, so that total purchasing power will remain at the same level in the years 2022 to 2025, according to the CPB.
The measures from the coalition agreement that are most favorable for the purchasing power of many households are the increase in: the employed person's tax credit, minimum wage, tax credit for the elderly and childcare allowance. The main negative influence on purchasing power is the increase in health care premiums as a result of the intensification of health care.
The flat purchasing power development is offset by the fact that the economy is growing faster than would be the case with unchanged policy. The CPB predicts GDP growth of 2,4% instead of 2%. Employment in government and education is increasing. Unemployment is falling and, as a result of the new policy, will be 3,3% instead of 4,1%.
Economic effects of nitrogen fund unclear
The CPB also reports that the economic effects of the climate and transition fund and the nitrogen fund are uncertain, because the feasibility and elaboration are still unclear. Of the €35 billion climate and transition fund, €6,1 billion will be spent until 2025 and the expenditure will continue on a structural basis. €3,5 billion of the available €25 billion of the nitrogen fund will be spent during the government's term of office. The intended measures include the purchase of animal rights, the purchase and depreciation of land, expansion of the natural area, expenditure on nature-inclusive agriculture and innovative housing systems.
Inflation up again in December
The Central Bureau of Statistics (CBS) also released the inflation figures for December today. At 5,7% compared to December 2020, this exceeded the inflation rate of November (5,2%). This means that inflation for the whole of 2021 will be 2,7%. Energy and food in particular contributed to inflation. Energy was 74,9% more expensive in December than a year earlier. In November this was 57,4% on an annual basis. Foods cost 2,6% more last month than in December 2020. In November, the difference with a year earlier was 1,1%. Meat, vegetables and fruit in particular have become more expensive.
Linda van Eekeres
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