Dutch Inflation rate drops to 4.6 percent

This article was last updated on July 31, 2023

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July inflation rate drops to 4.6 percent

Inflation this month is 4.6 percent, Statistics Netherlands reports. Prices are going up a little less quickly than last month; in June inflation was 5.7 percent.

Motor fuels drive inflation down

The decrease was mainly due to the price developments of motor fuels, which fell further. Energy, including motor fuels, became 21.6 percent cheaper after a price drop of 16.3 percent in June. This significant decline in energy prices has contributed to the overall decrease in inflation.

Food prices continue to rise, but at a slower pace

While energy prices experienced a notable decrease, food prices, on the other hand, increased. For example, the average price increase of products in supermarkets was 11.6 percent this month, compared to 12.6 percent in June. Groceries are therefore still becoming more expensive, but prices are rising less quickly than last month.

Methodological changes impact inflation rate

July’s inflation rate reflects price increases compared to the same month a year ago. However, it is important to note that the figure is somewhat distorted by a new method that Statistics Netherlands has been using since last month.

A more accurate reflection of energy prices

Previously, the price of new energy contracts was used to determine inflation. However, Statistics Netherlands has now implemented a change and is also considering current contracts. This adjustment aims to provide a more accurate picture of the inflation rate by reflecting the actual prices in the market.