Inflation in the Netherlands has reached its highest level since 1976

The latest data from the CBS (Statistical Agency of the Netherlands) shows that in March 2022 the inflation rate in the Netherlands reached 9.7 percent – the highest level recorded in the Netherlands in 46 years.

In March 2022, inflation in the Netherlands rose to 9.7 percent

Last week, CBS reported that according to the European HCIP method, prices for goods and services in the Netherlands have risen by 11.9 percent over the past year. Now, using a slightly different CPI method that also takes into account home prices occupied by homeowners, CBS has announced new inflation figures for March.

According to the National Statistics Office, after inflation in the Netherlands fell slightly in February, the figure rose significantly in March, reaching 9.7 percent. This is the highest inflation rate since April 1976, when it reached 9.8 percent.

This means that inflation in the first quarter of this year was 7.4 percent. Wages are unable to keep up with rising prices, and wages by collective bargaining rose by only 2.4 percent in the first three months of this year.

Mainly to blame for rising energy, gasoline and food

CBS notes that the sharp rise in prices may be due mainly to a significant increase in the cost of gas and electricity; last month, energy was 157 percent more expensive than in March 2021. This already has serious consequences for the cost of production and has already resulted in a significant increase in prices for consumers.

Fuel prices have also risen significantly over the past year, rising 36.5 percent between March 2021 and the last month. If last spring a liter of gasoline worth 95 euros cost drivers an average of 2.05 euros, in March this figure rose to 2.29 euros per liter. Food prices, which rose by 6.2% in the last 12 months, also contributed to the sharp rise in inflation.