Energy, fuels bring Netherlands' inflation down in July 2023: CBS

09 Aug '23

2 min read

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In July 2023, the Netherlands saw a 4.6 per cent YoY increase in consumer goods and services, down from 5.7 per cent in June, as per CBS.
A decrease in energy prices, which fell 34.5 per cent from the previous year, contributed to the decline.
Clothing also saw a decrease in price growth, and the overall European inflation fell to 5.3 per cent.

The Netherlands’ consumer goods and services were 4.6 per cent year-on-year (YoY) more expensive in July 2023. In June, the inflation rate stood at 5.7 per cent, as per Statistics Netherlands (CBS). Excluding energy and motor fuels, inflation would have been 6.8 per cent, down from 7.2 per cent in June.

An inflation rate of 4.6 per cent in July 2023 means that consumer product prices were 4.6 per cent higher than in July 2022. This means the 4.6-per cent inflation in July was not on top of the 5.7-per cent inflation in June.

The decrease in inflation was mainly due to the price development of energy. Energy prices have been falling steadily since January. In July, energy was 34.5 per cent cheaper than 12 months previously. Prices in June were 19.1 per cent lower than in the same month last year, CBS said in a press release.

As of June 2023, CBS uses a new method to measure energy prices and incorporate them in the consumer prices index (CPI). The method change affects the inflation rate.

The price developments of goods including clothing also had a downward effect on the development of inflation. Clothing was 5.5 per cent more expensive in July than 12 months previously, in June it was 10.5 per cent.

Consumer prices rose by 1.0 per cent in July 2023 relative to June. The price level during the past 12 months was the highest in October 2022.

According to the European harmonised index of consumer prices (HICP), consumer goods and services in the Netherlands were 5.3 per cent more expensive in July than in the same month last year, down from 6.4 per cent in June. Inflation in the euro area fell from 5.5 per cent in June to 5.3 per cent in July.

Fibre2Fashion News Desk (NB)

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