Annual inflation rate drops to 0.2%, lowest in 7 years; Groceries 10% more expensive
Daily life became 0.2 percent more expensive in September compared to the same month last year, Statistics Netherlands (CBS) reported in an initial estimate. Inflation was much lower than a month earlier when prices rose by an average of 3 percent. However, the rate does not reflect certain cost of living changes, like the 10 percent increase in grocery prices since September 2022.
These are the smallest price increases announced by CBS since September 2016. The fact that inflation is so low is mainly due to the influence of gas and electricity prices. These rose sharply in 2022 due to concerns about the natural gas supply after Russia largely cut off its supply to Europe. Energy prices are a lot lower now.
According to the European calculation method, which is slightly different from CBS’s, prices in the Netherlands fell on an annual basis. It concerns a decrease of 0.3 percent. The European method, a uniform method used in all EU countries to make comparisons easier, does not include the costs of living in a home.
The decreased inflation has not yet been observed in supermarkets. Food, drinks, and tobacco prices were still 10 percent higher in September than a year earlier.
Inflation has been rising steadily since the end of 2021, with the war in Ukraine causing high price increases since February 2022. The consequences for Netherlands residents’ purchasing power became an important political theme.
Social security is a leading topic in the run-up to the parliamentary elections in November. Many parties in parliament support an additional increase in the minimum wage.
Reporting by ANP and NL Times