De Nederlandsche Bank (DNB) is asking for help from the government and the business community to curb high inflation. According to macroeconomist Edin Mujagic, this is in line with the idea that “everything and everyone should help fight inflation.” BNR has listed the most important economic news for you this week so that you are always up to date with everything.
Mujagic says repeated calls from DNB suggest there are still long-term inflation fears. ‘Recently a stream of analysis and papers on inflation has flowed from DNB,’ says the macroeconomist. However, he calls it logical, because “everyone is talking about inflation.” But it also gives Mujagic the impression that the tone used in the analyzes and documents is intended to prepare the Netherlands for high inflation in the long term.
Minimum wage and petrol price
Inflation has therefore been high for some time, but it is also now known that the net minimum wage will rise by almost two percent on 1 July. According to human resources service provider Visma Raet, this will provide employees aged 21 and over who receive the minimum wage an extra €36.27 from July. The gross minimum wage will increase by just over three percent.
July 1 is not only the day the minimum wage increases, but also the excise tax on energy prices, including gasoline. This means that a liter of 95 Euros will soon cost seventeen cents more. In the days leading up to July 1, there is a run on petrol at smaller petrol stations. And then, according to director Erik de Vries of NOVE, it could happen that filling stations run out in some places.
Consumer confidence declining
While the minimum wage and the price of gasoline will rise, consumer confidence is down again this month compared to the previous month. This is according to data from the Central Statistical Office. Willingness to buy was more negative and consumers were also more pessimistic about the economic climate. According to BNR’s in-house economist Han de Jong, this dovetails with the impression that the Dutch economy has deteriorated across the board.
The flag is therefore far from being taken down in Holland, if it’s De Sciglio’s turn. This is while inflation in the US has fallen and interest rates are not being raised. True to tradition, the European economy follows that of the United States, but European inflation is still much higher and the latest inflation reading from the Netherlands was also disappointing. “While central banks said last year that the rise in inflation was temporary, I would now argue that the forces now depressing inflation are temporary,” says De Jong.
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.
