Good afternoon everyone! We’ve got some less-than-good news. Inflation in the Netherlands has never been so high; in August, it was 12%. Many people worry about how they will pay their bills in the upcoming months.
After a hot summer, a cold winter is coming! It’s strange to imagine in these high temperatures, but this month, turning on the heating was never so expensive.
Over the past few months, most of us have felt our buying power shrink. The same amount of money is worth less than it was a year ago when it comes to groceries, fuel — and basically all of life’s expenses.
Well, your feelings are now backed up by some less-than-lovely numbers released by the Statistics Authority.
The highest inflation — ever
Inflation in the Netherlands has been monitored by The Centraal Bureau voor de Statistiek (CBS) since 1963. The highest record was in 1975, when inflation was 11.1%.
Now, according to the NOS, this record is about to break.
One of the main price drivers for the new record was energy, but we can also see wild prices when it comes to our groceries or housing costs.
Shocking check-outs
We can see on a daily basis how we leave more and more money at the Appie, Dirk, and Jumbo. As of this August, your Dutch food haul is a casual 13.2% more expensive than a year ago.
Some products, such as fruits and vegetables (y’know, just the most important ones), are even rising above the average price increase.
Unless our bosses decide to up wages accordingly, it looks like slowly, it will be a privilege to have healthy meals or to be able to follow a specific diet (or stroopwafels for breakfast, for example.)
Winter is coming!
Filling our bellies aside, many people in the Netherlands also worry about how they will pay their bills when the weather grows colder.
“Gas, in particular, has become considerably more expensive, says economics editor Nik Wouters on the NOS Radio 1 Journaal. “That also causes electricity prices to rise.”
And what can we do about it?
There are many techniques for how people can try to save money on their bills. It looks like that in the upcoming months, these habits need to be expanded.
READ MORE: 10 dang smart ways to save on energy costs in the Netherlands
It seems like, for many of us, travelling, healthy meals or swimming in a heated swimming pool will feel luxurious with the current prices.
But if we look at the whole picture, these can look like minor problems when so many households in Europe don’t know how they will heat up their homes.
What does this all mean in the long run?
Behind these worrying numbers, an actual crisis could be looming. Factories may consider reducing or even shutting down production simply because the operational costs are too high.
That’s how inflation can hit the real economy, with not just our bills but also our jobs at stake. If you are a little bakery on the corner, with these energy prices, you need to ask for a crazy price for a piece of bread.
For now: keep it cool and have a cold (and cheap) shower!
How have you been affected by inflation in the Netherlands? Tell us in the comments below!
Let’s ask US for the cheap gas.