Daily life in the Netherlands became 2.7 per cent more expensive in March than a year earlier, Statistics Netherlands (CBS) reported in a quick estimate. Inflation has therefore increased compared with 2.4 per cent in February.
The March figure is the first monthly reading since the US–Israeli war with Iran began in late February. The conflict, now in its fifth week, has driven up oil and gas prices in the energy‑rich Middle East. As a result, energy and motor fuel prices rose sharply in March.
Energy and motor fuel prices increased by 6.5 per cent in March. In February, these prices were unchanged. Food, beverages and tobacco became 2 per cent more expensive, compared with a rise of 1.4 per cent a month earlier. Prices in the services sector increased by 3.8 per cent in March, down from 4.2 per cent in February. Industrial goods prices rose by 0.4 per cent, matching the increase seen a month earlier.
Seasonal influences
Compared with February, consumer prices rose by 0.7 per cent in March. CBS noted that temporary seasonal effects can significantly impact month-to-month figures. This is partly due to clothing sales, where discounts do not reflect lasting price cuts.
It was the first increase in inflation since September last year. Economists warn that if the conflict in the Middle East persists, inflation could rise further due to persistently higher energy prices. The European Central Bank (ECB) has also said the war is creating major uncertainty and will have a “material impact” on inflation in the short term.
Eurozone consumer prices
Using the European measurement method, inflation in the Netherlands stood at 2.6 per cent in March, up from 2.3 per cent in February. This EU‑wide method excludes the costs of owner‑occupied housing, which are included under the Dutch calculation.
Later this morning, the European statistical office Eurostat is due to publish preliminary inflation figures for the eurozone for March. In February, inflation in the euro area rose to 1.9 per cent, from 1.7 per cent in January.
@anp | NEWS BRAINPORT
