Dutch inflation jumped to 4 percent in November

Inflation in the Netherlands rose sharply in November to 4 percent on an annual basis, Statistics Netherlands (CBS) reported in a quick estimate. In October, inflation remained unchanged at 3.5 percent.

Food, beverages, and tobacco prices rose sharply again this month by 6.2 percent compared to a year earlier. In October, food, beverages, and tobacco already became 6 percent more expensive.

The prices of services also rose more sharply by 5.5 percent, compared to 5.4 percent in October. The prices of energy, including motor fuels, fell by 0.1 percent, much less sharply than last month’s 2.7 percent decrease.

Dutch inflation based on the European harmonized calculation method rose to 3.8 percent in November, from 3.3 percent in October. The European calculation method is slightly different from CBS’s. The method agreed upon within the European Union to measure inflation does not consider the costs of living in one’s own home.

Later today, the European statistics office Eurostat will release figures on inflation in the eurozone in November. In October it was 2 percent. In September, inflation in the eurozone cooled down to 1.7 percent, which means that it fell below the European Central Bank’s (ECB) target of 2 percent for the first time since April 2021.

CBS previously said that inflation in the Netherlands is higher than the eurozone average mainly due to the prices of services and tobacco products.

The ECB is already in the process of lowering interest rates now that inflation is around its target. In October, interest rates were lowered for the third time this year. At its next rates meeting in December, the ECB is expected to cut rates again to boost the euro area’s faltering economic recovery.