The Dutch inflation rate has been on the rise this year — going from 7.3% in February to 11.9% in March 2022. That’s an increase of 4.6 percentage points! 🥸
This increase is the largest the Netherlands has seen in the past 40 years and owes almost all of it to the rise in energy prices, reports NU.
In fact, the Centraal Bureau voor de Statistiek (CBS) estimated that the cost of energy (including fuel) in 2022 is twice as expensive as it was in 2021. ⛽
As you’ve probably realised already, the sharp increase in energy is largely due to the war in Ukraine, which has continued to drive up both oil and gas prices.
This tweet from the Centraal Bureau voor de Statistiek (CBS) explains that inflation in the Netherlands has reached 11.9% in March 2022, according to the HICP (Harmonised Index of Consumer Prices). 📈
The tweet also mentions that the graph only shows the initial estimates and that the actual figures will be published on April 7.
What does this mean?
Basically, the rise in the inflation rate represents how much more expensive life has become in the Netherlands.
According to NU, things like food, drink, and tobacco are now 5.5% more expensive than last year while other services have become 2% more expensive. 💰
How does the Netherlands move from here?
The rise or fall of the Dutch inflation rate will largely depend on how the war in Ukraine plays out, along with Putin’s demands on buying Russian gas.
On March 30, Putin announced that all western countries have to pay for their Russian gas in rubles from Friday April 1 onwards.
While the Netherlands has rejected this request, it creates a lot of uncertainty about gas prices in the future.
For now, the Dutch cabinet has lowered excise duties on fuel. This means a reduction in the indirect taxes on gas sales, which will apply for residents of the Netherlands for the entire year of 2022.
How are you experiencing this increase in fuel prices? Tell us in the comments below!