Dutch inflation climbs sharply to 3.5%, driven by energy costs

The Dutch annual rate of inflation rose to 3.5% in May, up from 2.8% in April, according to a preliminary estimate from national statistics agency CBS. It is the highest rate so far this year.

Energy, including motor fuels, was the main driver, with prices 9.9% higher than a year earlier, up from 7.9% in April. Fuel costs have been pushed up by the ongoing conflict in the Middle East, which has fed into inflation since the spring.

Service prices also climbed, rising 4.7% against 3.6% a month earlier. Food, drink and tobacco, by contrast, were just 0.4% more expensive, down sharply from 1.5%.

Month on month, consumer prices rose by only 0.1% in May, against a ten-year average of -0.1% for the month, the CBS said. The annual jump reflects higher energy and service costs measured against a year earlier rather than a surge in prices over the month.

Inflation remains above the 2% target set by the European Central Bank, where it has sat for years.

The CBS also published a second inflation figure calculated by the EU’s harmonised method, which excludes the cost of living in an owner-occupied home.

On that measure, inflation was 3.4% in May, up from 2.5% in April.
Full consumer price figures for May are due on 9 June.