FX.co ★ Dutch Inflation Confirmed at 14-Month Low

In July, the Netherlands' annual inflation rate was confirmed at 2.9%, showing a decrease from June's figure of 3.1%. This represents the lowest inflation rate recorded since May 2024. The decline was largely due to slower price hikes in housing and utilities, which were at 4.7% compared to 4.9% in June, and in alcoholic beverages and tobacco, which decreased to 1.8% from 5.3%. Conversely, there was an acceleration in inflation for food and non-alcoholic beverages, which rose to 4.7% from 4.4%, transport at 1.0% from 0.8%, and upholstery and household appliances at 3.4% from 0.8%. Health-related inflation remained consistent at 3.4%. Prices for clothing and footwear, however, saw an increased rate of decline, falling to -1.8% from -1.1%. Excluding energy, food, alcohol, and tobacco, core inflation eased to 2.9%, down from 3.0% in the preceding two months, marking the lowest point in 14 months. On a monthly basis, the Consumer Price Index (CPI) rose by 1.3% in July, marking the steepest increase since July of the previous year, following an unchanged reading in June. Correspondingly, harmonized consumer prices, which are used for comparisons across the European Union, increased by 2.5% year-on-year, a decrease from the 2.8% rise observed in the prior period.