Categories: Economy

Food inflation is still high, but has passed its ‘high point’ in one case Related articles

Inflation in January is definitively fixed at 7.6 percent. This is evident from new data from the Central Statistical Office. That percentage is as high as the quick calculation the agency made last week. BNR internal economist Han de Jong predicts that inflation will continue to decline gradually.

Food inflation is now over 17%, the highest percentage measured yet, says De Jong. ‘But what is striking is that for several components it can be seen that the price increases have passed the high point. Vegetables, for example, are more than 13% more expensive than a year earlier, but in December, that percentage was still just under 14%. These are small but beneficial developments.’

Very little is saved from high inflation. For example, spirits, which have become ‘only’ 2 percent more expensive than last year.

‘We are gradually seeing that price increases have passed their nadir in several components. Vegetables, for example, are more than 13% more expensive than a year earlier, but that percentage was still just under 14% in December,’ says home economist Han de Jong. (ANP / Sem van der Wal)

Price limit

According to De Jong, the new data reveal details and the introduction of the price cap is clearly visible. Gas has become 42% cheaper in one month, most likely due to the cap, thinks De Jong. Compared to a year earlier, gas is now almost 20% cheaper. Electricity became 23% cheaper in one month, but still more than 13% more expensive than a year earlier.

2023

De Jong points out that the price cap has caused a sharp one-off drop in inflation. “But of course it won’t happen again.” However, De Jong expects inflation to continue declining gradually and “very slowly”.

At 9.6%, inflation in the Netherlands was slightly lower in December than it was in November when inflation was 9.9%.

Author: Rosanne Peters
Source: BNR

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