The so-called free savings, ie the difference between consumption and income, amounted to 13.3 billion euros in the first three months of the year. That is 620 million euros more than the previous year. Revenues increased by 16 billion euros. This is mainly due to higher wages and more hours worked.
In the same period, on the other hand, consumer spending, i.e. all household expenditure, increased by over 15 billion euro. According to Statistics Netherlands, spending on goods and services has increased mainly due to rising prices.
Consumption of services increased more strongly in the first quarter. This includes the hospitality industry, financial and business services, recreation and culture. Both prices and volume have increased. This means that, despite the price increase, more services were purchased than in the previous year.
Price limit
Spending on food and luxury goods, energy, fuels and durables such as cars, appliances, furniture and toys has increased almost exclusively due to rising prices. According to Statistics Netherlands, the price cap for gas and electricity limited price increases in the first quarter.
The savings rate, or the percentage of income that people save, was once again higher in the first quarter at 14.4% than it was pre-coronavirus. This means that, despite high inflation, households continue to save relatively.