After a slight dip over the summer, inflation in the Netherlands is once again rising to record highs, reaching a staggering 14,5 percent in September 2022, largely as a result of soaring energy prices.
According to the most recent calculations carried out by Statistics Netherlands (CBS) using the CPI method, prices in the Netherlands were 14,5 percent higher in September 2022 than one year earlier. NOS reports that this is the highest figure recorded since records began in 1963.
While the inflation rate calculated by CBS is undoubtedly high, it remains slightly lower than the figure reported by Eurostat last week. According to the HICP method used by the European statistics office, prices in the Netherlands have risen by 17,1 percent over the past 12 months - a figure significantly higher than the European average of 10 percent.
The staggeringly high rate of inflation is largely down to the rising costs of gas and electricity, with CBS noting that if fuel and energy prices aren’t taken into account, the inflation rate in September was 6,5 percent. According to CBS, energy was 200 percent more expensive last month than in September 2021.
Falling petrol prices, on the other hand, had a depreciating effect on the inflation rate, with fuel prices having risen by “just” 6,7 percent over the past year. Meanwhile, rising costs for secondary education and university and high prices for various clothing items also contributed to the record-breaking rate of inflation.
While the Dutch government is taking steps to offset rising energy bills and boost the purchasing power of citizens and residents, the fact remains that life in the Netherlands continues to become increasingly unaffordable for a number of families and households. While salaries are rising at historic rates, they remain unable to keep up with the rapidly increasing prices.
Recent figures from employers’ association AWVN revealed that salaries agreed upon in collective labour agreements rose by an average of 3,4 percent over the summer - a record increase, but still far lower than the rising rate of inflation.