Finance

Life even more expensive in November: inflation to highest level in almost 40 years

The main culprits are energy prices: gas and electricity have become significantly more expensive. But clothes also rose in price, reports the statistical office. Inflation last month was sharply higher than the 3.4 percent in October.

Food also more expensive

Electricity was three quarters more expensive than in November last year. Gas rose in price by more than half and petrol was more than 31 percent more expensive than a year earlier. The Dutch had to pay more than 5 percent more for clothing. Food and drink became 1.1 percent more expensive, with food prices rising much faster than in October.

The picture is similar to that of last week. At the time, the European statistics agency Eurostat already reported that the inflation rate for the Netherlands, determined according to European measurement methods, was 5.6 percent in November, according to provisional figures. That was the highest figure since measurements began in 1997. Inflation for all euro countries together reached a new record.

ECB does not want to intervene

The European Central Bank, which is tasked with keeping inflation at around 2 percent, is not planning to intervene despite the sharp rise in price increases. Interest rates are still at historically low levels. Cheap money usually stimulates inflation.

The causes behind the high inflation are temporary, according to central bank policymakers for the eurozone for the time being. The high prices are partly due to a catching up that the industry had to make due to the surprisingly rapid economic recovery from the corona crisis. In addition, the pandemic caused very low inflation in 2020, sometimes even falling prices, they argue.

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