Dutch inflation dips to 11.2% in April
Inflation in the Netherlands was a little lower in April than a month earlier. According to Statistics Netherlands (CBS), inflation in April was 11.2 percent annually. In March, consumer prices rose by 11.7 percent.
Despite the slight dip, inflation is still very high. The sharp rise in energy prices due to the war in Ukraine, in particular, is driving inflation. But motorists lost a little less at the pump in March due to a reduction in excise duties on petrol and diesel. This had a dampening effect on inflation.
CBS released these figures ahead of the announcement of the inflation in the eurozone by the European statistical office Eurostat later in the day. The Dutch stats office used the European harmonized method to measure inflation. The method was created to allow a good comparison of inflation data from different European countries. The calculation differs slightly from the usual way in which CBS calculates inflation.
Inflation in the eurozone was 7.4 percent in March. High inflation undermines the purchasing power of households. European Central Bank (ECB) Vice-President Luis de Guindos said on Thursday that inflation is nearing its all-time high and that prices may rise somewhat less in the second half of the year. He does not think that inflation will return to a low level soon.
The ECB keeps a close eye on inflation in the medium term in its interest rate policy. The target for this is 2 percent. The monetary deprecation may well be above that for a while, the central bank said. The high inflation is reason enough for the ECB to accelerate the phasing out of its asset purchase programs. Once that is done, interest rates could go up. Central bank experts are therefore expecting an interest rate higke in the summer.
Reporting by ANP.