Data released this week by Statistics Netherlands show that inflation in the Netherlands is on the rise again. After a period of decline, the percentage has reached 6.1 percent. BNR lists all of this week’s economic news for you, so that you are fully informed.
According to Jasper Lukkezen, editor-in-chief of the economists’ magazine ESB, this is “large economy-wide inflation”, a harbinger of an “approaching recession”. Germany is already in a recession, the Netherlands appear to be on the right track. This is also reflected in the decline in producer confidence. The prospects are not good.’
Producer confidence declined faster in Germany than in the Netherlands. Our eastern neighbors are an important sales market for the Netherlands and are now officially in a recession. Lukkezen expects the Netherlands to take that blow too. “But if you look at industry and services, things are really better here than in Germany.”
Inflation
But it’s not all bad news from Germany, inflation is significantly lower this month than it was in April. This has to do with falling energy prices and the introduction of new and cheaper public transport passes. Inflation has also decreased in France and Spain and living has become cheaper. Italy also reported lower inflation, although the decline was smaller than expected.
The Netherlands is swimming against the tide in terms of inflation, and that’s not good news according to macroeconomist Edin Mujagic. Inflation is rising in the Netherlands, falling elsewhere. The implemented wage increases are visible in more and more sectors and it is not surprising, according to Mujagic, that the prices of services and goods are increasing significantly.
Pay for the electricity
Over the past three days, the Netherlands has been exporting large amounts of electricity, mainly to Germany. As the Netherlands exported electricity to neighboring countries while prices were steeply negative, the costs, according to energy transition professor Martien Visser of the Hanze University of Applied Sciences in Groningen, amount to around nine million euros. “Part of that bill could end up with citizens,” Visser fears.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
