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Inflation hits 4.1% as taxes, rent and energy increase in price

January 7, 2025
Photo: Depositphotos.com

Inflation rose marginally to 4.1% in December, according to an initial estimate from the national statistics agency CBS. The figure is the highest in 18 months and inflation has been on an upward trend since October 2023.

Increased taxes on tobacco and alcohol, rent rises, and an increase in energy prices are behind the rise, the CBS said. Domestic appliances, toys, and vegetables have become slightly cheaper.

The December rise puts inflation over 2024 as a whole at 3.3%, in line with 2023. A year ago, however, inflation had been brought under control and was just 1.2% in December 2023.

Dutch inflation, when calculated according to European methods, is 3.9% and that is roughly double the eurozone average. The Dutch central bank warned in December that the figure is unlikely to decrease in 2025.

Employers’ organisation AWVN said in Tuesday’s Telegraaf that salary rises agreed in last year’s pay deals amounted to around 5.3% on average, compared with 7.1% in 2023.

“This is asking a lot of our economy, particularly when you note that productivity has gone down,” director Raymond Puts said.

He warned that union demands in 2025 will awaken expectations that industry cannot meet. The FNV is targeting a 7% rise, while the CNV has said 3.5% to 6% is its target range. The unions also want to make agreements on shorter working weeks.

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