World Economy

Growth to Drive Up Dutch Inflation

Growth to Drive Up Dutch InflationGrowth to Drive Up Dutch Inflation

Strong economic growth and rising wages in the Netherlands look set to drive up inflation to 2.3% next year, national forecasting agency CPB said on Tuesday, Reuters reported. The Dutch economy will continue to outperform its eurozone peers with growth of 3.2% this year, falling back slightly to 2.7% in 2019, the CPB said. The eurozone’s fifth-largest economy reported growth of 3.2% last year, which was its strongest performance since 2007. With unemployment falling to the lowest level in 18 years, rising wages look set to push up inflation above 2% for the first time since 2013 next year, the CPB said. That would put inflation in the Netherlands considerably above the average for the whole eurozone, as the European Central Bank currently expects prices to rise by 1.5% in the currency block next year. The low interest rates used by the ECB to get inflation towards its 2% target, continue to stimulate the Dutch economy as they fuel an ongoing boom on the housing market.


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