Netherlands: Inflation eases in December from November
Latest reading: Harmonized consumer prices were up 2.5% in annual terms in December, following a 2.6% increase in the prior month. The reading remained above the euro area average and the ECB’s 2.0% target.
Relative to the previous month’s data, there were milder price pressures for food and non-alcoholic beverages (+3.3% on a year-on-year basis vs +3.4% in November), recreation (+2.2% vs +2.7% in November) and restaurants and hotels (+2.2% vs +4.2% in November). In contrast, price pressures were higher for transportation in December (+2.1% vs +1.8% in November). Finally, the change in housing and utilities prices was the same as in the prior month (+3.6% in December and November).
Meanwhile, consumer prices increased 2.8% on a year-on-year basis in December, following a 2.9% increase in the previous month.
Lastly, harmonized consumer prices were up 0.18% in December on a month-on-month basis, following a 1.38% fall in the prior month.
Panelist insight: Marcel Klok, ING’s senior economist, commented on this year’s outlook:
“Going forward, the expected negative contribution of energy prices, in particular, will prompt headline HICP inflation to approach the 2% target in our baseline forecast for 2026.”