Energy (electricity, district heating, and gas) was found to be costly in spite of reductions in value added taxes (VAT), which led to even further inflation, according to data released by the government agency Statistics Netherlands (CBS). Energy was 108 per cent more expensive in July 2022 compared to last year.
The consumer price index (CPI) of the Netherlands was recorded at 10.3 per cent in July 2022, which makes it the first time since October 1975 that the inflation rate has crossed 10 per cent. Price changes related to energy and rental property are viewed as the main causes of the rise in inflation. The inflation rate in June 2022 was marked at 8.6 per cent.
However, VAT on energy has been reduced from 21 per cent to 9 per cent temporarily as of July 1, 2022. The VAT cut will continue to remain until the end of 2022, as per the CBS report.
Moreover, according to the European Harmonised Index of Consumer Prices (HICP), consumer goods and services in the Netherlands were 11.6 per cent costlier in July 2022 than in July 2021.
Fibre2Fashion News Desk (NB)