After a turbulent few years, the Dutch economy finally began to see deflation since the start of October. Living in the Netherlands became 0,4 percent cheaper throughout October 2023 when compared to the same month last year, in large part due to lower energy prices.
Not only were the inflation figures lower than in the same period last year, they were also lower than in September 2023. However, figures from Statistics Netherlands (CBS) also showed that the cost of consumer goods and services was still 0,2 percent higher in October compared to the same period last year. Nevertheless, this was still the lowest rate of inflation in the Netherlands since September 2016.
Despite the fall in general prices, people in the Netherlands are unlikely to have seen any real difference in the price of their groceries just yet, since the majority of the deflation is accounted for through falling energy prices. In fact, prices for food, drinks, and tobacco were still 8,7 percent higher in October 2023 than they were a year ago.
By comparison to last year, this year’s inflation figures have been fairly tame, as pressure on the energy markets has eased. In 2022, much of the inflation that the Dutch economy faced was caused by the energy crisis that emerged from the war in Ukraine, leading the Dutch government to implement a series of benefits and allowances to try to improve purchasing power.
Despite the falling inflation rates, many in the Netherlands are still concerned about how far their money can stretch ahead of the upcoming Dutch general elections. The issue at the forefront of many voters’ minds, according to recent polling, remains purchasing power and inflation.