Inflation in the Netherlands slowed slightly in October, offering a glimmer of relief to households and businesses after months of persistently high prices. According to a preliminary estimate published by Statistics Netherlands (CBS) on the 31st of October, consumer prices were 3.1 percent higher than a year earlier, down from 3.3 percent in September.
The modest decline in inflation was largely driven by lower price increases for industrial goods and energy, particularly motor fuels. Energy prices rose 2.1 percent in October compared to the same month last year, a notable slowdown from 4.0 percent in September. Likewise, industrial goods, such as clothing, household appliances, and cars, saw prices increase by only 0.4 percent, down from 1.5 percent a month earlier.
In contrast, food and services continued to push inflation upward. The prices of food, drinks, and tobacco rose 3.8 percent, slightly higher than the 3.7 percent increase recorded in September. Services, including hospitality, transport, and healthcare, were 4.5 percent more expensive than a year earlier, compared to 4.1 percent the previous month. This indicates that while pressures on goods and energy prices may be easing, domestic inflationary forces linked to wages and service costs remain strong.
On a month-to-month basis, consumer prices in the Netherlands rose 0.3 percent in October. CBS, however, cautioned against drawing strong conclusions from monthly changes, noting that seasonal factors can distort comparisons. For instance, airline tickets and hotel prices tend to spike during holiday periods, leading to temporary, rather than structural, increases in consumer prices.
To facilitate comparison across EU countries, CBS also publishes inflation data based on the European Harmonised Index of Consumer Prices (HICP). Under this method, Dutch inflation stood at 3.0 percent in October, unchanged from September. This stability suggests that Dutch inflation is broadly in line with the wider eurozone trend, where price growth has also been gradually slowing in recent months.
Economists note that while the current figures point to a gradual easing of inflation, the Dutch economy is not yet out of the woods. Energy markets remain volatile, and the impact of rising wages — negotiated in response to earlier high inflation — could keep service prices elevated in the months ahead. Nevertheless, the slowdown may provide some breathing space for households and the European Central Bank (ECB), which has been struggling to bring inflation back toward its 2 percent target after a period of rapid monetary tightening.
For consumers, the latest data means that while price increases are slowing, the cost of living remains significantly higher than before the inflation surge that began in 2021. Analysts expect inflation to continue moderating into 2025 but warn that a full return to price stability will depend on energy markets, wage developments, and broader economic growth in the eurozone.
References
NL Times. (2025, October 31). Inflation in Netherlands drops to 3.1 percent in October. Retrieved from NL Times: https://nltimes.nl/2025/10/31/inflation-netherlands-drops-31-percent-october
Photo:
https://th.bing.com/th/id/R.4b0d7359fdcd3a46f2748553e710e30d?rik=tWL6Y61PGmGchw&pid=ImgRaw&r=0
