Netherlands: Harmonized inflation declines to lowest level since June in December
Harmonized inflation ticked down to 11.0% in December, following Novembers 11.3%. December’s reading represented the weakest inflation rate since June. Lower price pressures for housing and transport more than offset higher price pressures for food, recreation and restaurants and hotels.
Annual average harmonized inflation rose to 11.6% in December (November: 11.3%). Meanwhile, consumer price inflation fell to 9.6% in December, from the previous month’s 9.9%.
Lastly, harmonized consumer prices rose 0.66% from the previous month in December, swinging from November’s 3.90% fall.
On the outlook, INGs Marcel Klok commented:
“As gas prices have come down in wholesale markets and the energy price ceiling was introduced in early 2023, energy will contribute less (and in some months negatively) to inflation. Selling price expectations of non-financial businesses remain very high though. This suggests that core inflation might peak somewhere later in 2023. Earlier peaks in purchasing prices of inputs like raw materials, transportation, and energy will still be passed on to consumers.”