Dutch inflation over 10% for the first time since 1975

The Hague, Aug 5 : Inflation in the Netherlands increased to 10.3 percent in July, surpassing the threshold of 10 percent for the first time since the beginning of September in 1975 the Central Bureau of Statistics (CBS) announced.

In July, the cost of energy costs were 108 % higher priced as in the exact same month in 2021.In addition, food was 12.3 percent more costly in June than in the exact same month in the previous year, as compared to an 11.2 per cent increase in June.Cereals, dairy products and confectionery and sugar such as ice cream are the main factors that contributed to this growth.

CBS Chief economist Peter Hein van Mulligen , the chief economist of CBS, said that the price hikes for food were the highest in the past few decades.Edible oils, such as sunflower oil with an increase of over 60 percent were among the biggest contributors.

The cost of renting houses has also increased inflation.According to preliminary data the rent for houses was 3 percent more in the month of July in 2022 than in the year before.

On the other side, the prices of motor fuel were 25% higher in July than in the same month in 2021.However, in June 2022, the annual increase was 35 percent "Todays rising inflation will surely be a major threat to the purchasing power of our consumers," Van Mulligen added.

But, he added: "Inflation of 10 percent does not necessarily mean that the purchasing power decreases by 10 percent.The higher wages, tax cuts , and income assistance can make the decrease in purchasing power less apparent." .