Inflation in the Netherlands rises in November 2023

According to the flash estimate, consumer prices in November were 1 per cent lower than in October.

A significant factor influencing inflation has been the price development of energy, including gas, electricity, and district heating. The inflation rate, when excluding energy, was 4.2 per cent in November, down from 5.1 per cent in October. Earlier in the year, inflation excluding energy and motor fuels had peaked at 8.1 per cent in February and March, showing a subsequent decline, as per CBS.

The recent increase in inflation is primarily attributed to developments in energy prices. Energy was 43 per cent cheaper in November than in the previous year, a less steep decline compared to October when energy prices were 58 per cent lower than the year before.

In the second half of 2022, energy prices in the CPI surged, with a peak in October 2022. This led to high inflation rates during that period. Now, energy prices in the CPI are considerably lower than in 2022. Since inflation is measured against the prices of the same month in the previous year, the current rates are relatively lower.

In a broader context, according to the European HICP, consumer goods and services in the Netherlands were 1.4 per cent more expensive in November than the same month last year, while the October inflation rate was minus 1 per cent according to the HICP. In the euro area, inflation decreased from 2.9 per cent in October to 2.4 per cent in November, indicating a region-wide trend of decreasing inflation rates.

Fibre2Fashion News Desk (DP)