Economist Edin Mujagić predicts a sharp drop in inflation in the coming months. “In the summer, inflation can blow away from the Netherlands,” says Mujagić. According to the economist, the cause lies in the enormously high energy prices in the summer of 2022. “The prices really went up spectacularly then, sometimes by 200 and 300 percent.”
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To arrive at inflation data, a comparison is always made with the prices of a year ago. “If we enter the same months this year and gas and electricity prices are much lower than the same period last year, inflation can come down significantly.” Mujagić even expects to see an inflation rate of 0%. “I will not be surprised if we hear from Statistics Netherlands that we will have no inflation in the Netherlands.”
The no-inflation phenomenon will probably be temporary, predicts Mujagić. ‘However, this does not mean that we are enjoying a summer without problems due to inflation. But then you still go in the winter months.’
“Inflation will stay with us”
But Mujagić warns against focusing on the overall inflation rate. ‘We also have core inflation, without energy prices. This is the measure of how inflation behaves under the hood. I’m afraid we’re nowhere near zero here. Inflation will therefore stay with us for the next few years,’ said Mujagić.
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.
