CBS: Rising energy prices lead to highest inflation level in 40 years
Figures from Statistics Netherlands (CBS) confirm that in November, inflation in the Netherlands reached 5,2 percent, the highest level recorded since 1982. CBS attributes the increasing prices to the recent rise in the cost of energy.
Dutch inflation rate reaches record highs
Various projections by Eurostat and CBS had already suggested that the Dutch inflation rate had reached record highs in November, but now the Dutch statistics office has confirmed what many already suspected.
According to figures published on Tuesday morning, the price of goods and services in the Netherlands rose by 5,2 percent between November 2020 and last month. In October of this year, the national inflation rate was reported to be 3,4 percent.
This marks the Netherlands’ highest level of inflation since September 1982, and also means that the national inflation rate in November was higher than the projected figure for the eurozone (4,9 percent).
Life in the Netherlands becoming increasingly expensive
There are, of course, a number of reasons for this sudden and sharp increase in prices. CBS notes that food - particularly coffee, fruit, and potatoes - and clothing have both become more expensive over the past year, with prices rising 1,1 percent and 5,2 percent respectively. The statistics office also highlights rising energy and fuel prices, revealing that gas prices increased by 53 percent and electricity prices by 74,9 percent between November 2020 and November 2021. Petrol also became significantly more expensive, with prices rising by 31,4 percent.
The ongoing coronavirus pandemic is also partially to blame; the availability of several services was (severely) impacted by the virus and ensuing restrictions around the world, and CBS also remarks that general spending habits were also greatly affected. These factors are expected to continue to affect inflation in December and next year, but experts hope the effects will only be temporary.
The rising inflation rate "has everything to do with a global shortage on the world market," says Peter Hein van Mulligen, chief economist at CBS. "Not only raw materials, but also container transport has risen in price. The effects of this are now being reflected in Dutch inflation."