Consumer goods and services were 6.1% more expensive in May than in the same month a year earlier, reports Statistics Netherlands (CBS) based on final data. The inflation rate is in line with a previously reported flash estimate. In April, inflation was still at 5.2%.
Headline inflation therefore increased again last month. The Netherlands was also the only eurozone country where inflation picked up in May. This is mainly due to the fact that energy prices fell less sharply last month than in April. The prices of food, beverages and tobacco also increased again, albeit to a lesser extent than in April.
Energy, such as gas, electricity and district heating, cost almost 25% less in May. In April, however, prices were still more than 32% lower. Fuels, such as petrol, have had a downward effect on inflation. Motor fuels were 18.3% cheaper in May than they were twelve months earlier. In April, the year-on-year price decline was 12.7%.
Starting with the base month of June 2023, the flash estimate of which will be published on 30 June, Statistics Netherlands will use a new method to measure energy prices in the inflation rate. In the current method, price development is measured on the basis of new contracts. The new method uses transaction data from energy suppliers, so that long-term energy contract rates can also be taken into account.
In addition to general inflation data, Statistics Netherlands also publishes monthly inflation data excluding energy price trends, such as gas, electricity and district heating, and fuel. Excluding energy and fuel prices, inflation was 7.9% last month. In April, the annual price increase was 7.8%.
Eurozone
Inflation in the Eurozone was 6.1% in May, up from 7% in April, according to an earlier estimate by European statistics agency Eurostat. However, European Central Bank (ECB) President Christine Lagarde said on Monday that she still sees no signs that high inflation has reached its peak. Consumers and businesses should therefore not expect the ECB to stop raising interest rates for now. The central bank will meet again next Thursday to discuss interest rates.
Source: BNR
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