The Dutch inflation rate is on the rise, moving from an increase of 9.9% in June to a whopping 11.6% this month. 😯
The Dutch have been seeing a familiar pattern in the last four months, where prices of goods and services have been fluctuating, reports NU.nl.
However, the newest estimate by Statistics Netherlands sadly puts an end to this chummy pattern. 😥
Why are we experiencing a rise in inflation?
The ultimate component that broke the pattern is the sharp increase in energy prices.
We often look at the sky-high energy prices these days and ask, “will they ever fall?”. 🙄 Well, not this month and, naturally, the Russian invasion of Ukraine plays a huge role.
What else is affecting the inflation rate?
Energy prices aside, one of the largest food suppliers in the Netherlands, Unilever, which owns brands like Dove and Ben & Jerry’s, announced it’ll be bumping up its prices in the coming months.
Cherished manufacturers like Nestlé, Coca-Cola, and KitKat are planning to follow. (Nooo, not the chocolate! 😫)
Nestlé has already increased its prices by an average of 6.5% and Coca-Cola by 12% in recent months.
But we need not worry just yet. These price increases won’t come without struggle as the manufacturers face resistance from Dutch supermarkets.
Albert Heijn got into a fight with Nestlé about the price increase, and Jumbo was in conflict with Kellogg’s, which markets goodies like the chips brand Pringles.
What is being done about it?
To ensure price increases cool down somewhat, central banks around the world are raising interest rates — encouraging folks and businesses to borrow and spend less.
How do you feel about the increase in the Dutch inflation rate this month? Tell us in the comments below! 👇