Inflation will not fall further in October either

In the past month, groceries and services have become 3.6 percent more expensive compared to October 2023. This is evident from a quick, quick calculation of inflation by the Central Bureau of Statistics. Compared to last month (3.5 percent), inflation is going up a bit.

As in the past months, food products in particular have become more expensive, with the increase in tobacco prices playing a role. Energy (fuel and electricity) is cheaper than a year ago, which reduces the figure a little.

After a strong peak in inflation in 2022, it fell in the autumn of 2023, but in the last 5 months the inflation rate has been above 3 percent again. Economists generally prefer to see inflation remain below 2 percent.

Compared to other countries in the euro area, inflation has been very high in the Netherlands for a long time. In September, the Netherlands was number four, behind Romania, Belgium and Poland. The average inflation in the euro area in that period was 1.7 percent. This meant that inflation cooled higher than the 1.8 percent previously estimated.

Two weeks ago decrease The European Central Bank (ECB) increased the interest rate by a quarter of a percentage point to 3.25 percent. It was the third interest rate cut since June. In recent years, the central bank has raised interest rates to combat inflation.

The decrease occurred not only because the ECB believes that inflation in the euro zone is coming under control, but also because there are concerns about the economy. Wages are now rising so fast, which is why the ECB wanted to cut interest rates.

The central bank previously expressed the expectation that inflation will fall later in the coming year.