Dutch inflation eased slightly in August, marking the first decline in four months, according to preliminary data released by the Central Bureau of Statistics on Friday. Consumer prices rose by 3.6 percent year-on-year, a slight decrease from the 3.7 percent recorded in July, which had been a one-year high.
The harmonised index of consumer prices (HICP), a measure that tracks inflation across the Eurozone and European Union, also showed a modest decline. The HICP in the Netherlands eased to 3.3 percent in August, down from 3.5 percent in the previous month. This index reflects consumer price inflation based on spending patterns in each EU country, weighted according to each nation’s share of total consumer spending.
The slight reduction in overall inflation was primarily influenced by a significant drop in energy costs, which fell by 3.2 percent. However, the price growth for food, beverages, and tobacco continued to climb, rising to 5.6 percent in August from 5.4 percent in July. Similarly, service costs saw a slight increase, with prices rising by 5.8 percent compared to 5.7 percent in the previous month.
Despite the minor easing, the inflation rate remains a concern, with consumer prices still significantly above the European Central Bank’s target of around 2 percent. Economists will be closely watching upcoming data to determine if this easing marks the beginning of a broader trend or if inflationary pressures will persist.