In addition to inflation data from Statistics Netherlands, there is also data from Germany, France and the eurozone on how much more expensive living has become. Recently, inflation in the Netherlands fell from its autumn peak last year, but suddenly increased again in April. This is mainly due to a less pronounced drop in energy prices, but more expensive food also played a role.
Inflation data indicates whether the European Central Bank’s (ECB) interest rate hikes are starting to have an impact. If that’s not enough, further rate hikes are to be expected. ECB policy makers will meet again in mid-June.
Crisis averted
A crisis involving the US debt ceiling appears to have been averted. President Joe Biden and House Republican leader Kevin McCarthy have reached an agreement that will keep government spending roughly unchanged next year. Without a deal, the US would no longer be able to pay its bills in early June, which could have major consequences for the value of the dollar and the global economy. But it is unclear whether more radical Republicans will accept this deal. If not, McCarthy needs Democrat support. And it is not yet certain whether everyone wants to vote for this deal.
The reaction of US stock markets won’t be clear until Tuesday. Wall Street stocks will remain closed for Memorial Day on Monday. London stock exchanges are also closed for holidays. Trade is normal in the rest of Europe.
In terms of economic data, it has been a quiet week. In the Netherlands, the gaming company Azerion, which already recorded strong growth last week, is opening accounts. Data from the United States comes from server maker HP Enterprise, printer company Hewlett Packard, software company Salesforce and chipmaker Broadcom.