Inflation drops to 2.8 percent in February

Daily life became 2.8 percent more expensive in February compared to the same month last year, Statistics Netherlands (CBS) reports in an initial estimate based on incomplete source data. In January, inflation rose to 3.2 percent.

The increase in January was mainly because the influence of energy price developments on inflation decreased. In the first month of the year, there was a much less sharp drop in energy prices than in December. Energy and fuel together became, on average, almost a quarter cheaper in the last month of 2023 than a year earlier. In January, energy and fuels only became 2.5 percent cheaper. In February, energy and fuels actually became 1.1 percent more expensive.

Prices of food, drinks, and tobacco increased by 2.7 percent in February. In January, that increase was still over 4 percent. Services were 4.5 percent more expensive last month. In January, services were 4.8 percent more expensive.

According to the European measuring method, which is slightly different from CBS’s, prices rose by 2.7 percent annually in February. In January, that was 3.1 percent. The agreed method within 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.