Inflation reaches five-year high

Inflation in the Netherlands is now almost double the European average, reaching 3.1% in July, according to new figures from the national statistics office CBS.

This is the highest level since September 2008 and a rise of 0.2 percentage point on June, the CBS said.

Rent increases, which usually come into effect in July, account for the bulk of the increase but more expensive telephone and internet services as well as clothes also helped drive inflation upwards.

Rent

Housing rents rose by an average 4.5% in July, the biggest rise since 1995, the CBS said. Rent rises are usually pegged to the previous year’s inflation but the government hopes sanctioning a bigger rise will encourage more high earners to leave the rent-controlled sector.

According to harmonised EU calculations, the Dutch inflation rate fell slightly to 3.1% in July while the average eurozone rate is unchanged at 1.6%.

Within the EU as a whole, only Romania (4.5%) and Estonia (4.1%) have higher inflation than the Netherlands.

MPs from the ruling coalition parties said the increase in inflation had been forecast. Next year, the retail price index will be back under 2%, in line with forecasts, Labour MP Henk Nijboer is quoted as saying by Nos television.

 

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