Inflation dropped to 14.3% in October

According to Statistics Netherlands’ (CBS) own calculation, inflation in the Netherlands fell slightly to 14.3 percent in October from 14.5 percent in September. Energy prices were somewhat lower, but food prices were higher.

CBS already reported that the currency depreciation decreased somewhat last month according to the European harmonized method. That method showed inflation of 16.8 percent for October. In September, inflation was still at a record 17.1 percent. Inflation has been high for months because gas and electricity prices have risen sharply. Those higher energy costs are also increasingly affecting food prices.

According to CBS, energy - gas, electricity, and district heating - was 173 percent more expensive in October than in the same month a year earlier. In September, the price increase was 200 percent. Motor fuels were 7.5 percent higher in October than a year earlier, compared to 11.4 percent in September.

In addition to the general inflation figure, CBS also calculated what inflation would be without the strongly fluctuating energy and fuel prices. In October, inflation without energy and fuels was 6.9 percent, compared to 6.5 percent in September.

Food prices rose 14 percent in October. In September, the price increase of food amounted to 12.8 percent. The increase was mainly due to bread, cereals, and dairy becoming more expensive. Clothing prices also had an increasing effect on inflation. Clothing was 9.4 percent more expensive in October, compared to 8 percent in September.

CBS’s own figure includes the costs of housing, like rent. The European method does not take that into account. The European method was devised to make it easier to compare the inflation of different countries.

Statistics Netherlands calculates energy prices based on new contracts. That means that the actual inflation is likely lower because by no means do all households conclude a new energy contract every month. The stats office is working on a new method for measuring and calculating energy prices.