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11 Dec, 2022 05:31

Dutch food prices soar as economy weakens

Economists no longer expect an “impressive recovery” and blame high inflation for weak performance
Dutch food prices soar as economy weakens

Food prices in the Netherlands have jumped by 15.7% in November compared to last year, data shared on Thursday by Statistics Netherlands (CBS) shows.

The consumer price index (CPI) was 9.9% up in November from the same month last year. Experts point out that bread, cereals, meat and dairy products in particular have contributed to the price increase.

According to the European harmonized consumer price index (HICP), services and consumer goods in the country were 11.3% more expensive in November than in the same period in 2021.

In its latest quarterly report released on Monday, Dutch financial services company Rabobank downgraded its estimates of an “impressive recovery” from the Covid pandemic after growth stalled in the third quarter, and has said the country’s economy will “barely” grow in the coming years.

Rabobank economist Nic Vrieselaar noted that the Dutch economy had reached its limits this year and pointed to “staff and equipment shortages everywhere.” Production capacity is also strained by surging energy prices leaving no room for growth, according to the report.

“High inflation and increased rates are putting pressure on consumer and business spending,” he added.

After this year’s expected growth of 4.2% analysts predict weak performance for the Dutch economy, with just a 0.6% advance next year, and are forecasting a 1% GDP increase in 2024.

For more stories on economy & finance visit RT's business section

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