Increased Energy Prices Cause the Highest Inflation Since 2002

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Goods and services became 3.4 percent more expensive for consumers in October than a year earlier. That is the most substantial increase since April 2002, reports the Central Bureau of Statistics (CBS).

 

Gas and electricity, among other things, became considerably more expensive last month, causing inflation to rise. Prices rose by 2.7 percent in September.

A combination of factors has been driving higher gas and electricity prices in wholesale markets for some time now. For example, the reserves were relatively small due to the harsh winter, and the demand for energy worldwide increased strongly due to the economic recovery from the corona crisis.

As a result, gas became almost 31 percent more expensive for households than a year earlier. Electricity rose just under 40 percent in price compared to October 2020. The Dutch also had to pay more for petrol, diesel and other fuels. In addition, the higher prices for clothing had an effect on inflation.

According to the European harmonized method of calculating inflation, inflation was even higher in October. In that case, consumer prices rose by an average of 3.7 percent. That is slightly less than in the entire eurozone. Inflation there rose to 4.1 percent on an annual basis in October, the highest level since July 2008.

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