Prices in the Netherlands have increased by 1.3 percent due to inflation
Translated by Adriana Dancu
The value of goods that a euro can buy in the Netherlands has decreased in value in the last year by 1.3 percent, says the Central Bureau of Statistics. In other words, prices have risen by roughly the same amount, says the CBS.
The rate of inflation is down year-on-year, the year before last saw the price of many products in the supermarket go up because the low VAT rate was increased from 6 to 9 percent from 1 January 2019.
Inflation was kept relatively low in 2020, partly because energy prices were a lot lower: on average, the energy bill of consumers was almost 12 percent lower than the year before.
The level of inflation influences, among other things, negotiations about an increase in collective wages, because employees do not want to lose out (on balance) compared to price rises: for example, when gross wages rise less than inflation.
In the past year, wages under collective labor agreements have risen faster than inflation, with an average increase of 3 percent. The largest collective wage increases were usually agreed before the Coronavirus crisis hit.
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