Food prices jump 18.4% in a year; Clothing 11.8% more expensive
Food in the Netherlands cost 18.4 percent more in February than a year earlier. Clothing was also considerably more expensive, with a price increase of 11.8 percent, Statistics Netherlands reported. These two item categories substantially contributed to inflation last month, which amounted to 8 percent.
While energy prices are no longer skyrocketing, the higher energy prices still indirectly contribute to inflation, ABN Amro economist Aggie van Huisseling told RTL Nieuws. The increase in food prices is mainly due to higher prices for fresh vegetables. Products like tomatoes currently come mainly from greenhouses, which are heated with gas. And gas prices are still higher than a year ago, Van Huisseling explained.
Higher clothing prices also drove up inflation, but to a lesser extent than food. Clothing prices increased less, and people also spend less on clothes than food. Food contributed 2.2 percent to the 8 percent inflation rate in February. Clothing accounted for 0.53 percent.
ABN Amro expects inflation to amount to 4 percent for the whole of 2023. There are two opposing factors, Huisseling explained. On the one hand, lower energy prices will depress inflation. But on the other hand, the increase in energy prices we have already experienced is gradually being passed on to the cost of other products.