Netherlands: Inflation rate slows but remains higher than most

Despite a steep drop in fuel prices, annual inflation in the Netherlands was still 3.5% in September, one of the highest in the eurozone.

Prices in the Netherlands were 3.5% higher in September than a year earlier, according to the final figures published by the Netherlands Statistics Office (CBS).

The pace of the price increase was, however, slightly slower than in August when annual inflation was 3.6%. In a monthly comparison, prices dropped by 0.5% in September, the first month-by-month decline since November 2023.

One of the main reasons for some easing in the prices was the drop in the cost of motor fuels, prices were 11.3% lower in September than a year earlier pulling down with them the costs for transport (-1.6%).

Meanwhile, prices for food and non-alcoholic beverages accelerated to 2.2% and clothing and footwear became 1.8% more expensive than in the previous year. Inflation for housing and utilities (4.2%) remained unchanged.

In the meantime, the harmonised consumer prices (CPI), a rate to compare inflation with other EU member states, rose by 3.3% year-on-year, unchanged from August 2024.

This is the second-highest inflation in the Eurozone, where the average rate fell from 2.2% in August to 1.8 % in September. “It is mainly due to the price developments of services and tobacco products that inflation in the Netherlands is higher than in the eurozone,” reads the report of the CBS.

Separately released data shows that household consumption in the Netherlands increased by 0.7% year-on-year in August 2024, following a 0.8% rise in the previous month. Spending rose for household goods and services among others, but declined for food, beverages, and tobacco.