The end of relatively high price increases is not yet in sight. In December, prices rose above average, with inflation reaching 4.1 percent according to a quick estimate by Statistics Netherlands.
This is the highest inflation rate in one and a half years. Tobacco, rent, alcoholic and non-alcoholic drinks became more expensive over the past year, with excise duty increases playing a significant role.
Energy prices have also been rising again in recent months. It is challenging to find products or services that decreased in price; household appliances, carpeting, and toys became slightly cheaper, and vegetables saw minimal price reduction.
Details on the specific price increases in December will be published later by the statistics bureau. The overall inflation for 2024 was 3.3 percent, similar to 2023, although by the end of 2023, inflation seemed largely under control at 1.2 percent.
Concerns about high Dutch inflation have been growing as the eurozone average drops toward 2 percent, making Dutch inflation an exception. The Dutch Central Bank warned last month that inflation would barely decrease in 2025.
To offset high prices, wages in many collective labor agreements increased by over 6 percent last year. These wage increases have largely compensated for price rises.
Employers’ organization AWVN expects wages to rise by just under 5 percent in 2025, which could mean that those with collective labor agreement wages will have more disposable income.
Source: NOS