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March 10, 2022 | xpath.global
According to the most recent report from the Netherlands Bureau for Economic Policy Analysis (CPB), the cost of living in the Netherlands will rise by 5.2 percent in 2022 as a result of the Ukraine conflict and rising energy prices.
The CPB’s Central Economic Plan 2022 was released on Wednesday morning. It outlines the agency’s key economic forecasts for the year. As the situation in Ukraine worsens, the CPB notes that it is difficult to make precise predictions for the coming months. That is because the future is uncertain. However, experts believe that the ongoing conflict will have a significant impact on the lives and finances of those living and working in the Netherlands.
In terms of annual Dutch inflation, the CPB predicts that prices for goods and services will rise by 5.2 percent this year. A more optimistic outlook would require energy prices to return to their 2019 levels. This predicts inflation of 3% in 2022, while the worst-case scenario predicts inflation of 6% in 2022.
The CPB report comes as the Netherlands faces significant price changes for a variety of goods. This comes as a result of the ongoing conflict in Ukraine, with petrol prices rising at an increasing rate.
With prices rising across the board, the CPB predicts that purchasing power will fall by up to 3.4 percent. The hardest hit will be low-income families and single-person households. They will face rising energy bills with only limited financial assistance from the Dutch government.
The CPB report comes after Prime Minister Mark Rutte told the Dutch House of Representatives (Tweede Kamer) that little could be done to combat rising prices.
“We all have to deal with a loss of prosperity,” the Prime Minister said on Tuesday. “At the most, the cabinet can dampen these new price increases.”
Rutte’s cabinet is under increasing pressure from MPs to limit the effects of rising prices. However, the Prime Minister claims that there are no quick or easy solutions to the problems caused by Ukraine’s war. Lastly, Sigrid Kaag, Finance Minister, has stated that she is “working very hard” to “make it as bearable as possible for people.”
Source: iamexpat.nl
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