De Nederlandsche Bank (DNB) has revised its inflation forecast, predicting that higher inflation will persist in the Netherlands into next year. The central bank now expects inflation to remain at 3.2% in 2024, matching this year's rate, and has cautioned that, without measures, the current high price increases could become entrenched.
The sustained inflation is attributed to factors such as rising energy and fuel costs, as well as ongoing increases in food prices. Additionally, the Netherlands has experienced higher inflation rates compared to many other eurozone countries in recent months.
DNB director Olaf Sleijpen advocates for collaborative efforts to mitigate inflationary pressures. He emphasizes the importance of reasonable negotiations on matters like wage and rent increases to prevent further fueling of price rises.
With the European Central Bank (ECB) lowering interest rates after previous hikes aimed at controlling inflation, the Netherlands may have less support from monetary policy to curb price increases. The DNB emphasizes the need for prudent government policies that consider inflation impacts, suggesting the inclusion of an "inflation paragraph" in legislative proposals.
Source: NOS