Dutch inflation rate falls, but food prices remain high
Preliminary figures from Statistics Netherlands (CBS) show that in July 2023 inflation in the Netherlands fell to 4,6 percent, down from 5,7 percent in June. In spite of this, however, customers continue to face high prices for groceries - something which Dutch supermarkets are certainly benefiting from.
Inflation in the Netherlands falls to 4,6 percent in July
According to the most recent estimations by CBS using the CPI method, prices in the Netherlands in July 2023 were an average of 4,6 percent higher than during the same period last summer. This means that inflation in the Netherlands has fallen for the second month in a row.
Perhaps unsurprisingly, CBS reports a negative inflation rate when it comes to energy - a key reason for the recent fall in inflation. The Dutch statistics office reports that gas, electricity and petrol prices are now 21,6 percent lower than in July 2022.
Dutch supermarkets benefitting from high prices
Certain goods and services continue to see their prices rise; this month, the Netherlands recorded an inflation rate of 11,6 percent for food and drink, down from 12,6 percent in June. While recent studies have revealed that the prices for some food items are finally falling, Dutch supermarkets continue to benefit from these rising prices for groceries.
CBS reports that supermarkets have seen profits increase by 12 percent over the past year. This rise in turnover is in spite of the fact that shoppers are buying less - 1,7 percent less, to be precise.
According to research conducted by RTL Nieuws, these sharp price rises have resulted in customers changing their shopping habits as they hunt for the best deals. Not only are consumers now more regularly favouring budget stores such as Action or Big Bazar for certain items, but 43 percent of those surveyed said they “scour several stores to find the lowest price.”
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