Inflation is falling sharply throughout the eurozone, except in the Netherlands. It is precisely the prices of things that are usually not volatile that have become higher with us. According to Bert Colijn, economist at ING, this is a sign that inflation could last a little longer here.
While inflation fell in all other euro countries, or remained the same in the case of Malta, prices in the Netherlands rose by an average of 6.8 percent in May. Compared to 5.8 percent in April. What strikes Colijn is that, in addition to the price of food, the increase is mainly reflected in the prices of goods and services. And these are just the things that are usually less affected by price fluctuations.
‘A possible conclusion that you can draw is that inflation will therefore remain high here for a while’
‘It is therefore mainly due to the somewhat less volatile prices,’ says the economist, ‘and that may be an additional point of concern. Because a little more importance is attached to the price growth in that category. One possible conclusion you can draw is that inflation here will therefore remain high for a while longer.’
Overtaking movement
In itself, Colijn is surprised that these goods are rising in price. ‘You would think that the problems with the supply of parts have largely been resolved. There are not so many shortages anymore. And companies that make goods have to contend with lower energy costs.’
Inflation will eventually fall here too, the ING economist expects. The question is at what speed this will happen and whether we will catch up in the long term.
Higher wages
Another factor, according to Colijn, is that wages are rising somewhat faster in the Netherlands than elsewhere. ‘The increase here is around 6 percent, while the average for the eurozone is just over 4 percent. That gives more opportunities to consume at high prices. And it gives companies the opportunity to raise prices for longer.’
