High energy, food prices pushed Dutch inflation to 5.7%

Inflation rose to 5.7 percent on an annual basis in December. According to Statistics Netherlands (CBS), which released the figures, higher food and energy prices, in particular, caused the rise in inflation. In November, inflation was 5.2 percent, then the highest level in nearly 40 years.

According to CBS, energy was almost 75 percent more expensive in the last month of the year than a year earlier. In November, the annual price increase here was 57.4 percent. Furthermore, meat, vegetables, and fruit became more expensive. This was a plus of 2.6 percent in December on a yearly basis. In November, it was still 1.1 percent.

The price developments for motor fuels and a stay in a holiday park had a depressing effect on the price developments. Refueling in December was on average 27.8 percent more expensive than the previous year, compared to 33.1 percent in November. Staying in a bungalow park was 7.1 percent cheaper in December than in the same month a year earlier. In November, staying in a holiday park was still 4.6 percent more expensive. This is also because the Christmas holidays started a week later this past year.

Measured over a whole year, consumer prices were on average 2.7 percent higher than in 2020. A year earlier, the price increase was 1.3 percent. Energy price developments, in particular, contributed to higher inflation in 2021. Last year, electricity was on average 2.2 percent more expensive than one year previously. In 2020, electricity was 39.6 percent cheaper than the year before. Gas was on average 16.7 percent more expensive than in the year before. In 2020, this price increased by 2.6 percent.

Last week, CBS reported that Dutch inflation reached 6.4 percent in December calculated on the European harmonized method.