High energy & fuel prices push Dutch inflation to 2.7% in March

Daily life in the Netherlands was 2.7 percent more expensive in March than a year earlier, Statistics Netherlands (CBS) reported in a quick inflation estimate. In February, inflation was still 2.4 percent.

The March inflation figure is the first monthly figure that includes the rise in consumer prices caused by the American-Israeli war with Iran, which began in late February. Due to the war in the oil-rich Middle East, oil and gas prices rose sharply in March. Compared to February, consumer prices were 0.7 percent higher in March.

Energy prices, including motor fuels, had the biggest upward effect on inflation this month. These prices increased by 6.5 percent in March, after a 0.0 percent increase in February.

Food prices also pushed inflation up, rising by 2.0 percent in March after a 1.4 percent rise in February.

The prices of services increased slightly less in March (+3.8%) than in February (+4.2%). And the price increases for industrial goods, excluding motor fuels, were +0.4 percent in both months.

The statistics office also calculated Dutch inflation based on the European harmonized method (HICP), the method agreed upon in the eurozone to make comparing inflation figures simpler. Based on the HICP, Dutch inflation was 2.6 percent in March, up from 2.3 percent in February.

The main difference between the CBS and European methods is that the HICP does not take into account the costs of owning a home. CBS calculates those costs in inflation based on rent trends.