Netherlands: Harmonized inflation declines to lowest level since February 2022 in January
Harmonized inflation fell to 8.4% in January, following December’s 11.0%. January’s reading represented the weakest inflation rate since February 2022. Lower price pressures for housing, clothing and restaurants more than offset higher price pressures for food, health and transport.
Annual average harmonized inflation rose to 11.7% in January (December: 11.6%). Meanwhile, consumer price inflation fell to 7.6% in January from the previous month’s 9.6%.
Lastly, harmonized consumer prices fell 1.90% from the previous month in January, swinging from December’s 0.66% increase.
Analysts at the EIU commented:
“As elsewhere in the region, high inflation is mainly linked to supply bottlenecks and elevated global commodity prices. However, a peculiarity related to the authorities’ calculation of the utility price component of inflation (which assumes that utility rates rise in line with spot prices, despite the large number of fixed-rate contracts) means that inflation has been higher than in most other countries in the region.”