Dutch Inflation Falls Considerably In January

2026-02-04 05:35:00 ET

By Marcel Klok , Senior Economist, Netherlands

Deceleration in services, food, and industrial goods

Services prices in particular contributed to the deceleration of the headline HICP inflation rate in the Netherlands. This occurred despite an increase in the VAT rate on accommodation from 9% to 21%. Still, services remain the main reason inflation is above normal rates. Services inflation decreased from 4.3% YoY in December to a still elevated 3.6% in January. It is the only main category still above 2% inflation. This is largely the result of strains in both the labour and housing markets, which continue to drive significant increases in wage costs and rents....

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