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Sebastiaan Schreijen
Rabobank
Central Bureau for Statistics CBS
Dutch inflation
sugar tax
excise duties
tobacco
Thursday, 3 October 2024 - 07:00

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Expert says that rising grocery prices are mainly due to government measures

The rising prices of groceries and tobacco are more a result of government measures than manufacturers and supermarkets raising the prices themselves. Increased tobacco excise duties and the 'sugar tax,' among other things, mean that food prices are still subject to significant inflation, sector specialist Sebastiaan Schreijen of Rabobank explained.

Statistics Netherlands (CBS) reported on Tuesday that inflation in the Netherlands has decreased slightly, but the prices of food, drinks, and tobacco increased more significantly in September. According to Schreijen, the figures give a somewhat distorted picture. "These figures include several things that manufacturers and supermarkets can do something about."

For example, on April 1, the excise duty on tobacco increased, making a packet of cigarettes more expensive. The special consumption tax on non-alcoholic beverages, popularly known as the sugar tax, has also increased significantly this year.

Excise duties on beer, wine, and other alcoholic drinks also increased. Schreijen explained that it would take around a year before the effects of the government measures are no longer visible in the inflation numbers. This is because CBS calculates the inflation numbers on a yearly basis.

"When you filter that out, the underlying price increases in supermarkets are not so bad," Schreijen said. Generally, the prices in supermarkets in September hardly changed compared to a month earlier, according to him. "The price of sugar went up by around one percent, coffee beans went up by around half a percent, and the prices of fresh vegetables and potatoes went down by around one percent," he said. "Especially if you are a heavy smoker and soda drinker, you will pay more."

People who buy discounted products a lot at supermarkets also spent less money in September. Supermarkets offer fewer discounted products in the summer, but they offered many discounts and sales last month. As a result, prices on a monthly basis were actually slightly lower than in August.

Reporting by ANP

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