Inflation climbs to 3.4 percent, highest level since 2002

Last month, inflation in the Netherlands reached its highest level since 2002 when consumer goods and services were 3.4 percent more expensive than the year before, Statistics Netherlands (CBS) reported. Prices were 2.7 percent higher in September.

According to the statistics office, the increased inflation is mainly due to higher gas and electricity prices. Natural gas prices rose 30.6 percent compared to October last year, and electricity by 39.6 percent. Global energy demand was one factor in pushing prices higher. Another was the dwindling level of gas reserves due to the cold and stormy winter last year.

Additionally, the year-on-year increase was particularly high because these prices were very low a year ago due to the coronavirus pandemic. Higher motor fuels and clothing prices also pushed inflation during their previous 12 months.

According to the European harmonized consumer price index (HICP), the Netherlands' inflation was 3.7 percent in October and 3.0 percent in September. Inflation in the eurozone rose from 3.4 to 4.1 percent.