By our economics editors
Jun 30, 2023 at 06:39 Update: an hour ago
The prices of goods and services are on average 5.7 percent higher this month than in the same month last year. This means inflation is lower than last month, when it was 6.1 percent.
This is evident from figures from Statistics Netherlands on Friday. The fact that prices have risen less rapidly is mainly due to the fact that energy has become 16.3 percent cheaper.
Gas and electricity were very expensive last year due to the loss of Russian natural gas. But energy prices have been falling steadily since last summer and this is reflected in the inflation figures. We also spend less at the pump than last year.
On the other hand, groceries are still getting more expensive. According to Statistics Netherlands, we paid an average of 12.6 percent more at the supermarket checkout and at specialist shops than a year ago.
An inflation rate of 5.7 percent means that prices are almost 6 percent higher than a year ago. It is not the case that June’s inflation will be higher than that of May.
Friday’s figure is a preliminary estimate. On 11 July, Statistics Netherlands will publish the final inflation figure for June.
CBS uses a different method for energy prices
In June, Statistics Netherlands used a different method for the first time to determine inflation. This enables the statistics office to calculate energy prices more accurately.
In the old method, Statistics Netherlands only looked at energy rates that consumers paid when they concluded a new contract. But those rates rose sharply due to the high gas prices, while no account was taken of households that had an ongoing contract with much lower rates.
In the new method, Statistics Netherlands takes much more account of the different prices that people pay. This should give a more realistic picture of actual inflation.
For years, the Netherlands had stable energy prices, so the method of calculation did not matter much. But last year’s rapidly rising prices made the method less accurate.
Inflation lower in 2022 due to new method
If inflation had been calculated using the new method in recent years, it would have been lower until October 2022. From November 2022, inflation would actually have been higher. Measured over a longer period, according to Statistics Netherlands, there is no difference in the results of the two calculation methods.
Determining inflation correctly is important because the government and other parties use it. This concerns, for example, trade unions that take inflation into account when determining wage demands. Landlords of homes can also look at inflation to determine their new rent. The government can also look at it when determining the level of, for example, minimum wages and benefits.
2023-06-30 04:39:01
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