49 minutes Ago
Energy and Fuel Costs Keep Climbing
Energy prices, which had actually been running 1.8 percent lower than a year earlier back in June, flipped to a 1.1 percent increase in July. Much of this pressure traces back to the war in the Middle East, which broke out in late February and sent oil and gas prices soaring in the months that followed. Inflation had already climbed to 3.5 percent in May, a steep jump from the 2.4 percent recorded in February before the conflict began. Statistics Netherlands pointed to these higher fuel and energy costs as key drivers behind July's uptick. New import duties on consumer goods bought from outside the European Union added further pressure to the overall figure.
Housing Costs Ease Slightly, Prices Rise Monthly
There was at least one bit of good news: housing costs grew a bit more slowly than the month before. Preliminary numbers put housing cost growth at 4.3 percent year on year in July, down from 4.7 percent in June. Statistics Netherlands calculates this figure using rental market trends, applying it to both renters and homeowners. Every month, consumer prices rose 1.6 percent in July, though the agency noted that seasonal swings, especially clothing sales, can skew this number and don't always signal a lasting price drop.
How the Netherlands Compares to Europe
Measured using the European method, which leaves out the cost of owner-occupied housing, Dutch inflation hit 3 percent in July, up from 2.5 percent in June and revised higher from an initial estimate of 2.9 percent. That puts the Netherlands slightly ahead of the eurozone average of 2.9 percent. Statistics Netherlands said the gap comes down to sharper price increases for services and industrial goods at home compared with the rest of the euro area.
