Inflation climbs to 3.2 percent in January

Daily life became 3.2 percent more expensive in January compared to the same month last year, Statistics Netherlands (CBS) reported based on an initial estimate. According to CBS, it calculated the estimate based on incomplete source data. In December, inflation was still 1.2 percent. The increase was mainly because the influence of energy price developments on inflation decreased in January.

The drop in energy prices was much less sharp in January than in December. Energy and fuel together became almost a quarter cheaper, on average, in the last month of 2023 than a year earlier. In January, energy and fuels became only 2 percent cheaper. Excluding energy, inflation was 3.5 percent in January and 3.4 percent in December.

The prices of energy like gas, electricity, and district heating strongly influenced inflation for some time. Energy prices increased in 2022 due to the war in Ukraine, and inflation skyrocketed. From January 2023, the government’s energy price cap led to lower energy prices, and partly as a result, inflation was lower in 2023. Because the price cap was introduced exactly one year ago in January, the influence of energy prices on inflation decreased in January 2024.

Food, drinks, and tobacco prices increased by over 4 percent in January. In December, that increase was still over 5 percent. Services were 4.8 percent more expensive than a year earlier.

According to the European measuring method, which is slightly different from CBS’s, prices rose by 3.1 percent annually in January. In December, that was 1 percent. The method agreed upon within the European Union to measure inflation does not take account of the costs of living in your own home. The inflation rate for the entire eurozone will be announced later in the day.