Ministers call 17.1% inflation rate "terrible," "extreme"

Statistics Netherlands’ announcement that inflation was 17.1 percent in September, according to the European harmonized method, hit the Cabinet hard. Various Ministers commented, calling the inflation rate terrible and pointing out that the government is working on softening the blow.

“It is terrible,” said Finance Minister Sigrid Kaag, NOS reports. “It’s really extremely high, also in the countries around us.” She pointed out that the Cabinet already announced a 17 billion euros package to boost purchasing power next year and is working on the energy price cap for consumers.

“We have to be careful that we don’t spend all the money now and have nothing left in the event of a recession,” Kaag said when asked about further measures. More intervention could actually fuel the inflation, she added. “It’s a balancing act that takes place in many countries.”

Minister Micky Adriaanses of Economic Affairs was also shaken by the high inflation. “You wonder how bad it can get,” she said. She is working on a solution for the energy-intensive SMEs - small and medium-sized enterprises that consume a lot of energy, like bakers and greenhouse horticulture. “However hard it may be, we will have to take into account that some companies will not make it,” she added.

Minister Karien van Gennip of Social Affairs and Employment said that a week ago, there was already talk of historically high inflation figures. “And a week later, you hear it again,” she said. The government’s purchasing power package will help many people next year, but they’ll feel it until then, she said.

Minister Hugo de Jonge for Housing said he decoupled housing associations’ rents from inflation. Instead, rents will be linked to wage development in collective bargaining agreements. “That guarantees that rents remain affordable,” he said. He promised to elaborate on this plan soon.