An average inflation rate of 6,7% in the Netherlands for the whole of 2022, which could rise to 9,5% with a little setback. These expectations of Klaas Knot, president of De Nederlandsche Bank (DNB), are unprecedentedly high figures. "We have to go back decades to see such comparable figures," said Edin Mujagic, chief economist at OHV Asset Management in an interview with Boerenbusiness.
These are sterile figures, but the impact behind this currency depreciation should not be underestimated. Such high inflation rates are going to hurt a lot of people, Mujagic indicates, especially that part of the population that is not already well off at the moment. Entrepreneurs in the food chain - from agricultural entrepreneurs, processors, producers to retail - are already struggling with the effects of rising costs that they try to pass on to their end customers. That will remain the challenge in the coming months, Mujagic explains. It will hurt all sides in the food chain, the economist expects, giving entrepreneurs tips to keep their financial management as optimal as possible during this period.
The war in Ukraine is a major driver of current economic trends. Mujagic reflects on the impact of this war in Europe. The interest rate hike and the clear interest rate policy of the US central bank Fed are also discussed, as well as why the European Central Bank (ECB) has not mapped out a clear course.
