Inflation fell sharply in October, but the large gap in energy prices caused the picture to deteriorate significantly.
In the first preliminary calculation, the Central Bureau of Statistics (CBS) arrives at a negative inflation rate of -0.4 percent. This means that the average price level in September 2023 will be 0.4 percent lower than a year ago; This was mainly because energy prices were still too high last year. Excluding energy, prices were 5.1 percent higher in October.
In the supermarket you hardly notice that inflation is falling. Food, beverage and tobacco prices increased by 8.7 percent in October compared to the previous year. In September, these products were 10 percent more expensive than a year ago.
The decrease in inflation does not mean that prices decreased in October 2023 compared to September 2023. According to the preliminary estimate, consumer prices were 0.5 percent higher in October compared to the previous month.
Other calculation method
The latest figures cannot be compared directly to the percentages from a year ago. Since June, CBS has been using a new calculation method. The price of new energy contracts is undercut by existing contracts.
Previously, CBS based its calculations on the prices of new energy contracts. Inflation was significantly overestimated because many households continued to have contracts at lower prices last year. This is now an underestimate as Statistics Netherlands compares current energy prices with last year’s extremely high new contract prices.
Statistics Netherlands will publish full inflation figures on November 7.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
