The inflation rate has also decreased compared to last month: in May, the Netherlands still had to contend with an average inflation of 6.1%. “Good news,” thinks De Jong. There are still high inflation figures across the board. For example, the average increase in the prices of products in supermarkets remained almost unchanged (12.6 per cent against 12.8 per cent in May). Prices of industrial goods increased by 7.3%, compared to 8.9% the previous month.
Energy, including fuel, on the other hand, costs 16.3% less than 18.5% in May. Services became 5.7% more expensive, after a 6.1% price increase the previous month.
New method
Statistics Netherlands has used for the first time a new method to measure energy prices in the inflation rate. The old method measured on the basis of the new energy contracts. The new method uses transaction data from energy suppliers, so that long-term energy contract rates can also be taken into account.
An emotional moment, says De Jong. Because this can have important consequences. ‘Last year, inflation was more than 14 percent in September. But with the new calculation method it would have been only 7.8%.’
“It is obvious that the union movement will eventually moderate wage demands”
The trade union movement, among others, will have to deal with this, thinks De Jong. Soon after that data released about 14% inflation, unions began making wage demands at similar percentages. “It is obvious that the union movement will eventually moderate wage demands,” thinks De Jong, because in hindsight the actual inflation was actually lower.
The unions’ wage claims based on this were therefore “high”, he thinks. ‘On the other hand. The labor market remains tense, we live in a market economy and everyone can defend their interests.’
excise duty
The increase in excise taxes on fuel could lead to a further increase in inflation, thinks De Jong. “Not only will this raise prices at the pump, but it will also raise the inflation rate for July.”
The new calculation method does not make the inflation rate in the Netherlands much more transparent, thinks De Jong. The next figures will be compared with figures that were obtained differently. ‘The official inflation figure has a very strong official status and appears in all kinds of contracts. If you start to fix all this historically, legal problems will also arise.’