Netherlands Inflation (PPI, ann. var. %, aop)

Harmonized inflation comes in at highest level since December 2022 in February

Harmonized inflation rose to 8.9% in February from January’s 8.4%. February’s reading was the highest since December 2022. The acceleration was largely driven by higher price pressures for food, clothing, housing and restaurants and hotels.

Annual average harmonized inflation edged up to 11.8% in February (January: 11.7%). Meanwhile, consumer price inflation rose to 8.0% in February from the previous month’s 7.6%.

Lastly, harmonized consumer prices rose 1.34% in February over the previous month, compared with a decline of 1.90% in January. February’s result marked the highest reading since September 2022.

Statistics Netherlands (CBS) has announced that it will update its energy inflation measurement methodology from June 2023. As such, the reading for energy inflation will take into account the long-term energy contracts of households, as opposed to the current methodology’s sole focus on new energy contracts. The statistical office said this should lead to a more accurate inflation reading.