Consumer prices in the Netherlands rose by an average of 3.3% last year, according to new data from Statistics Netherlands (CBS).
The annual inflation rate was down from the 3.8% recorded the previous year, however several factors were keeping the rate elevated, including housing and tobacco costs.
Within the housing sector, rents rose by an average of 3.7% last year, compared to 2023, which followed on from a 2.5% increase the previous year. This trend contributed notably to the overall inflation rate.
Tobacco prices recorded a notable increase in 2024, with prices climbing by 29.0% due to an increase in excise duties, introduced in April 2024. The full impact of the tax hikes was reflected in the market on a gradual basis, however, as the price of tobacco typically lags the introduction of new excise duties due to the sale of existing stock, Statistics Netherlands said.
Food price inflation
Food prices were also up, reporting an average increase of 1.1%, however this was a more marginal gain compared to 2023, when prices rose by 12.1%.
As Statistics Netherlands noted, this slowdown in food price inflation contributed to an overall decline in inflation compared to the previous year.
Price falls
Several segments also saw a decrease in prices, including furniture and household items, which fell by 3.0% in 2024, helping to offset inflation. The drop in prices was primarily driven by lower costs in furniture, upholstery, and household textiles.
On a pan-European basis, inflation across the eurozone showed a noticeable decrease in 2024, falling from 5.4% in 2023 to 2.4% last year.
‘The prices of consumer goods and services were on average 3.3 percent higher in 2024 than in 2023,’ Statistics Netherlands said. ‘Inflation is measured as the development of the consumer price index (CPI) compared to the previous year. The price developments of housing and tobacco made the largest contribution to inflation in 2024.’ Read more here.
