Deflation in Netherlands: Prices dropped 0.4% in October

Daily life became 0.4 percent cheaper in October compared to the same month last year, Statistics Netherlands (CBS) reported in an initial estimate. According to CBS, the negative inflation in October is entirely due to energy prices being particularly high in October 2022. Excluding energy, inflation in the quick estimate was 5.1 percent.

In September, consumer goods and services were still 0.2 percent more expensive than a year earlier. That was the lowest inflation since September 2016. In September, inflation excluding energy was 5.5 percent. In the first half of 2023, inflation excluding energy and motor fuels was higher than now, peaking at 8.1 percent in February and March.

The decline in inflation does not mean that prices have fallen in October 2023 compared to September 2023. Compared to a month earlier, prices for consumers were 0.5 percent higher in October, according to the quick estimate. CBS will publish the full inflation figures on November 7.

People in the supermarket haven’t noticed the decreased inflation yet. Prices for food, drinks, and tobacco were still 8.7 percent higher in October than a year earlier. In September, these goods became 10 percent more expensive.

The price development of energy - gas, electricity, and district heating, for example - has had a major influence on inflation for some time. That is mainly due to the high prices last year. Energy prices are now a lot lower than in 2022. Energy including motor fuels became over 40 percent cheaper this month. In September, energy prices already fell by over 38 percent.

According to the European measuring method, which is slightly different from CBS’s, prices fell by 1 percent on an annual basis. In September, there was a price decrease of 0.3 percent. The method agreed upon within the European Union to measure inflation does not consider the costs of living in your home. The inflation rate for the entire eurozone will be announced later in the day.