- Inflation rate down again due to plummeting fuel prices
- Higher excise on tobacco products has cushioning effect on declining inflation
- Inflation in the eurozone drops more rapidly than in the Netherlands
The Dutch inflation rate over November stood at 2.3 percent, 0.5 percentage points down on October. For the third month running, inflation declined relative to the previous month. According to the latest figures released by Statistics Netherlands, this is due to the sharp drop in petrol prices.
Prices for automotive fuels have plummeted for the second month in a row relative to the previous month. In November, petrol prices were 9.6 percent down on October. This is the sharpest price drop in the past thirty years. Diesel fuel was 7.6 percent cheaper than in October.
November’s inflation drop was partly offset by an excise increase for tobacco products, effective from 1 July. The consequences are barely noticeable as a large supply of tobacco products at old prices was still available. It lasted until November for the price increase to become felt by consumers.
Dutch inflation according to the European harmonised method (HICP) is 1.9 percent in November, 0.6 percentage points down on October. Eurostat estimates the inflation rate in the eurozone in November at 2.1 percent, a decline by no less than 1.1 percentage points relative to October, when the inflation rate was 3.2 percent. Inflation in the eurzone drops much more rapidly than in the Netherlands. This is mainly due to a more direct link between gas and electricity prices and oil prices in most other European countries and the excise increase for tobacco products in the Netherlands. In November, inflation in the Netherlands was only marginally below the eurozone level.
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