Inflation in the Netherlands reached 6.1% in May 2023, according to the rapid estimate released by the Central Bureau of Statistics (CBS). This rapid estimate is based on preliminary data and provides an early indication of inflation trends. In April, consumer goods and services were 5.2% more expensive compared to the previous year. The regular consumer price index (CPI) figures for May will be published on June 6.
An inflation rate of 6.1% in May 2023 means that consumer prices were 6.1% higher than in May 2022. It’s important to note that the inflation of 6.1% in May is not in addition to the 5.2% inflation observed in April.
The rapid estimate of inflation is calculated using incomplete source data and is subject to revision. Final and more detailed inflation figures will be available in the coming weeks.
The increase in inflation reflects the ongoing upward pressure on consumer prices in the Netherlands. Rising costs across various product categories contribute to the overall inflationary trend. The CBS will release detailed information on the price developments of specific product groups alongside the regular CPI figures.
One significant factor contributing to the higher inflation rate is the sharp increase in the prices of industrial goods, excluding energy and motor fuels. These goods experienced an inflation rate of 8.9% in May, compared to 8.3% in April.
On the other hand, energy prices, including motor fuels, showed a slight improvement. While still experiencing a considerable decrease, the inflation rate for energy prices was -18.5% in May, an improvement from the -22.2% inflation rate observed in April.
The prices of food, beverages, and tobacco continued to rise in May, with an inflation rate of 12.8%. Additionally, services, which include various sectors such as housing, transportation, and leisure activities, saw an inflation rate of 6.1%, similar to the previous month.
It’s worth noting that starting from June 2023, the CBS has implemented a new method to measure energy prices in the CPI. This new method utilizes transaction data from energy suppliers, allowing for a more accurate measurement of price changes in the energy sector. The update aims to provide a more precise inflation figure.
The rapid estimate of inflation is part of the Harmonized Index of Consumer Prices (HICP), which is used for international comparisons among EU member states. The European Central Bank considers the HICP when formulating monetary policies. The HICP inflation rate for the Netherlands in May was estimated to be 6.8%, slightly higher than the domestic CPI figure.
While inflation continues to rise, its impact on households and the broader economy remains a significant concern. The Dutch government and relevant authorities will closely monitor inflationary trends and take appropriate measures to ensure economic stability and support consumers’ purchasing power.