Fixed household costs are rising much faster than inflation, research shows

The average family’s fixed costs will rise much faster than inflation next year. An average family will pay almost 500 euros more in fixed costs in 2025, more than 120 euros higher than what would be expected based on the rate of inflation. The higher fixed costs are mainly due to soaring insurance rates, according to price comparison site Keuze.nl.

A family with two adults, two children, a home and a car will pay 474 euros more in fixed costs next year than in 2024 due to rising premiums and increased fees for various subscriptions. Their anticipated costs will therefore increase considerably faster than the expected inflation rate of 3.2 percent they will face next year.

This calculation does not include rent, and it does not include mortgage payments. The website’s analysts calculated household costs on the basis of the most common subscriptions and contracts within families and households, together with data about municipal taxes and fees.

According to Keuze.nl, there is a significant differences between the different types of household costs. For example, the costs of Internet and mobile phone subscriptions are expected to be reasonable, while many common insurance policies will increase significantly next year.

Health insurance costs will increase by about 288 euros next year, and car insurance will increase by 97.80 euros for the average family. In 2025, families will pay almost 60 euros more for home insurance.

Not all costs will increase in 2025. The energy bill for an average family with a fixed energy contract without solar panels will be slightly lower than last year. This is because the energy rates are somewhat lower compared to the beginning of 2024, and the energy tax is also lower next year. The bill will be higher for families with a variable energy contract.