Dutch inflation rate on the rise again as energy and food prices soar
Preliminary figures released by Statistics Netherlands (CBS) and the European statistics office Eurostat reveal that the Dutch inflation rate rose to 11,6 percent in July, largely due to the rising cost of energy and food.
Inflation reaches 11,6 percent in July 2022
After peaking in March, the past several months have seen inflation fall slightly, reaching a low point of 9,9 percent in June. However, it seems as though this trend was short-lived, as preliminary figures suggest that inflation in the Netherlands is once again on the rise. According to estimates calculated by CBS and Eurostat using the HICP method, the price of goods and services has risen by 11,6 percent since last July.
Figures suggest that rising energy and fuel prices played a significant role in the high inflation rate, with prices rising by over 68 percent between July 2021 and this month. Food prices have also soared over the past year, rising by an average of 10,1 percent.
ECB raises interest rates as prices climb across Europe
Inflation in the Netherlands was already rising to record highs in the wake of the coronavirus pandemic, but the Russian invasion of Ukraine in February has only served to further drive up prices, not just in the Netherlands, but across the continent.
In order to make up for rising inflation, the European Central Bank (ECB) recently took the decision to raise interest rates for the first time in 11 years. By pushing interest rates up by 0,5 percentage points, the ECB hopes to discourage borrowing and make saving more attractive, thereby slowing down economic growth and stabilising prices.