Inflation was 1.6 percent in November; Food prices up 7.3%

Daily life became 1.6 percent more expensive in November compared to the same month last year, Statistics Netherlands (CBS) reported in an initial estimate. Food, drinks, and tobacco prices were 7.3 percent higher this month than a year earlier.

Price increases returned after negative inflation, also known as deflation, in October. In that month, the average price level fell by 0.4 percent. That was mainly because energy prices in October were considerably lower than the high levels of last year.

November had a less sharp decline in energy prices than October. Excluding energy, inflation was 4.1 percent in November. In October, it was 5.1 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 increase in inflation does not mean that prices increased in November compared to October. According to the quick estimate, consumer prices were 1.1 percent lower in November than in October. CBS will publish the full inflation figures on December 12.

The price development of energy, like gas, electricity, and district heating, 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 25 percent cheaper this month. In October, energy prices fell by over 40 percent.

In supermarkets, prices rose slightly less rapidly in November than a month earlier. Food, drinks, and tobacco prices were still 7.3 percent higher this month than a year earlier. In October, these goods became 8.7 percent more expensive.

According to the European measuring method, which is slightly different from CBS’s, prices rose by 1.4 percent on an annual basis in November. In October, there was a price drop of 1 percent. The method agreed upon with the European Union to measure inflation does not take into account the costs of living in your own home. The inflation rate for the entire eurozone will be announced later in the day.