The Netherlands is currently a month into its third hard lockdown and slowly the economy catches on. 📈
Already in October, inflation rates reached a historic 20-year record in the Netherlands with prices going up 3,4% in 2021 compared to the year before. This was the highest recorded inflation rate since 2002.
In November 2021, inflation rates went up even further and reached 5,2% — a 40-year high.
And, you guessed it, December was no different. The NOS reports, that life in the Netherlands was 6,4% more expansive than last year.
High energy prices
The main reason for rising inflation rates is thought to be high energy prices, such as gas and electricity. Other possible factors are interrupted supply chains, lockdown measures, and reduction of workers due to the coronavirus.
However, Peter Hein van Mulligen, chief economist of the Centraal Bureau voor de Statistiek (Central Bureau for Statistics), tells the NOS: “We do expect that this [the inflation] will decrease again, especially for the energy prices. Even though, there are many uncertainties, such as the geopolitical situation in Ukraine or omicron.”
This did not affect the Netherlands alone. Inflation rates throughout the eurozone have been on the rise and are now at their highest since 1997 with 5%.
Have you been impacted by these high inflation rates? Tell us in the comments!
Feature Image: AndreyPopov/Depositphotos
