Cigarettes, motor fuels and clothing in particular have become more expensive last month. Which turns out figures from Statistics Netherlands. The average price increase of consumer goods and services (inflation) in the Netherlands last month amounted to 1.6 percent.
Prices for motor fuels are an important indicator of inflation and increased in June from the previous month. The price level was still 7.9 percent lower than in the same month last year. In May, however, it was 14.1 percent lower.
The price hike for cigarettes and rolling tobacco was solid in June, up 17.9 percent from the same period last year. The cause of this is the increased excise duties.
Although this tax increase took effect in April, retailers may still sell tobacco purchased before the excise tax increase after that date. As a result, the increase has a delayed effect on the overall price level of smoking products.
A third category that became more expensive is clothing. Although it was a relatively modest increase, on average 0.8 percent compared to the same month last year. In May, clothing was 0.5 percent cheaper than in May 2019.
Prices in the Netherlands are rising faster than in the EU
Overall inflation was 1.6 percent in June. That was a stronger increase than in May, when the price level was 1.2 percent higher than in the same month last year.
Prices in the Netherlands are rising faster than in other EU countries. This is evident when Statistics Netherlands applies the European calculation method. This shows an average price increase of 1.7 percent in June in the Netherlands, while average inflation in the eurozone was 0.3 percent.
The corona crisis can also be felt when calculating inflation. Because there were no or hardly any transactions for some products and services, for example for air travel or the use of gyms, Statistics Netherlands had to make an estimate for these product groups.
The article groups for which prices had to be estimated together account for about 6 percent of consumer spending.
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