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Central Bureau for Statistics Netherlands
Thursday, 12 June 2025 - 21:10

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Dutch inflation drops to 3.3 percent in May as flight and travel prices fall

Dutch inflation eased to 3.3 percent in May, down from 4.1 percent in April, with steeply lower international flight prices and a decline in demand for holiday accommodations playing key roles in the decline, according to new figures released on Thursday by Statistics Netherlands (CBS).

One of the most significant contributors to the slowdown was the sharp reversal in airline ticket prices. In April, international flights were 20.8 percent more expensive than the same month a year earlier. By May, that trend had flipped entirely—tickets for international flights were 20.3 percent cheaper than in May 2024. The fall in airfare prices reportedly had a measurable dampening effect on overall inflation.

CBS also pointed to the impact of vacation schedules on inflation. In May 2025, there were fewer public holidays compared to May 2024, due to the early timing of the spring break. As a result, fewer people traveled, pushing down prices for bungalow park stays. According to CBS, “Prices for goods and services related to tourism tend to be higher during public holidays and school breaks because more people go on vacation.”

Overall, the contribution of the transportation sector to inflation turned negative in May, subtracting 0.16 percentage point from the total inflation rate. In April, it had added 0.23 point. The hospitality sector also exerted less upward pressure, contributing just 0.19 point compared to 0.50 in April. Recreation and culture similarly saw their impact on inflation decrease to 0.17 point from 0.36 point the month before.

Other sectors contributed moderately. Housing, water, and energy added 1.23 percentage point to the annual inflation figure in May, slightly up from April’s 1.12 point. Food and non-alcoholic beverages added 0.49 point, a slight increase over the 0.46 in April. Alcohol and tobacco, along with household furnishings and appliances, also played steady roles in the overall increase, each contributing between 0.21 and 0.55 percentage point.

CBS noted that short-term price changes can be volatile due to seasonal factors. Prices for airline tickets and vacation accommodations are typically higher during holiday months, but those increases are temporary and not considered structural. “That’s why developments from month to month are often more volatile than year-on-year changes,” CBS said.

The average price level in May 2025, measured by the CPI with 2015 as the base year (index = 100), stood at 134.00. This marks a drop from April’s 134.72, reflecting the monthly decline. The CPI has fluctuated notably in recent years, reaching a peak of 132.26 in October 2024 before falling slightly in the final months of that year.

CBS also released inflation data using the Harmonized Index of Consumer Prices (HICP), which allows for better comparison between EU member states. According to this index, prices in the Netherlands were 2.9 percent higher in May compared to a year earlier, down from 4.1 percent in April. That figure was slightly below the earlier quick estimate of 3.0 percent. Inflation across the eurozone as a whole fell from 2.2 percent in April to 1.9 percent in May.

Dutch prices for food, beverages, and tobacco rose 7.0 percent year-on-year in May, more than double the eurozone average of 3.3 percent. Meanwhile, energy prices, including motor fuels, dropped 1.1 percent in the Netherlands, though that decline was less steep than the eurozone’s 3.6 percent drop. Dutch prices for industrial goods excluding energy rose 1.7 percent, compared to a 0.6 percent increase in the eurozone, while services in the Netherlands increased 2.8 percent versus 3.2 percent across the currency bloc.

CBS emphasized the distinction between the two inflation measurements. The CPI includes domestic consumption patterns and reflects national spending habits, while the HICP standardizes methodology across EU countries for international comparisons.

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