Netherlands: Harmonized inflation comes in at record-high level in August
Harmonized inflation rose to 13.7% in August, following July’s 11.6%. August’s figure was the highest inflation rate since records began. The increase was broad-based, with greater price pressures recorded for food, energy and industrial goods.
The trend pointed up, with annual average harmonized inflation coming in at 8.5% in August (July: 7.6%). Meanwhile, consumer price inflation rose to 12.0% in August, from the previous month’s 10.3%. This marked the highest print since at least 1963, when current records began.
On a monthly basis, harmonized consumer prices rose 2.35% in August. This was up from July’s 2.17% increase and marked the strongest monthly expansion since March.
Analysts at the EIU added:
“Annual inflation in the Netherlands has been in double digits since March […]. As elsewhere in the region, this is mainly linked to supply bottlenecks and higher global commodity prices. However, a peculiarity related to the authorities’ calculation of the utility price component of inflation […] means that inflation has been higher than in most other countries in the region. […] We forecast average inflation of 10.8% in 2022, slowing to a still-high 8.4% in 2023.”