Dutch inflation climbs to 3.6 percent in October

Inflation in the Netherlands rose slightly in October to 3.6 percent on an annual basis, Statistics Netherlands (CBS) reported in a quick estimate. In September, inflation cooled to 3.5 percent, from 3.6 percent in August.

In September, the slight cooling of inflation was mainly caused by lower motor fuel prices. In October, motor fuel prices fell less sharply than the previous month. Food, beverages, and tobacco became 6 percent more expensive in October. This was the same as in September. The prices for services rose slightly less sharply to 5.4 percent, compared to 5.6 percent in September.

Dutch inflation based on the European harmonized calculation method remained unchanged at 3.3 percent in October. This calculation method is slightly different from CBS’s. The method agreed upon within the European Union to measure inflation does not take account of the costs of living in your own home.

Later today, the European statistics agency Eurostat will release figures on inflation in the eurozone in October. In September, it was 1.7 percent. Inflation was therefore below the European Central Bank’s (ECB) target of 2 percent for the first time since April 2021.

The ECB is already cutting interest rates as inflation continues to decline. Earlier this month, the interest rate was cut for the third time this year. At the next interest rate meeting in December, the ECB will probably cut interest rates again to boost the eurozone’s faltering economic recovery.