The rate at which prices are rising in the Netherlands fell further in July compared to a month earlier, Statistics Netherlands (CBS) reported based on a quick initial estimation. Inflation this month was 4.6 percent. In June, it was still 5.7 percent. In that month, the stats office used a new method for measuring energy prices in the inflation rate for the first time.
In the old method, the price development was measured based on new energy contracts. The new method uses transaction data from energy suppliers, also considering the rates of longer-term energy contracts. According to CBS, that ensures a more accurate inflation figure.
This month’s decrease was mainly due to the price developments for motor fuels, which fell further. Energy, including motor fuels, became 21.6 percent cheaper after a price drop of 16.3 percent in June. Food prices, on the other hand, increased. The average price increase of products in supermarkets was 11.6 percent this month, compared to 12.6 percent in June.
Prices of industrial goods rose by 6.3 percent, against 7.3 percent a month earlier. Services became 5.8 percent more expensive after a price increase of 5.7 percent in June.
In order to make a good comparison with other European countries, CBS also provides inflation figures according to the European method, which does not take housing rents into account, among other things. The devaluation of money then amounted to 5.3 percent, compared to 6.4 percent in June.
Later today, the European statistics agency Eurostat will release inflation figures for the entire eurozone. In June, inflation in the euro area cooled to 5.5 percent annually.
Because inflation was still above the target of 2 percent, the European Central Bank (ECB) raised interest rates again last week by a quarter of a percentage point to 3.75 percent. Whether the ECB will raise interest rates further at the next meeting in September depends on the economic data available at that time, according to the central bank.
Reporting by ANP