Inflation rose last month to 5.7 percent year-on-year. On a full-year basis, consumer prices were on average 2.7 percent higher in 2021 than from the year before. This is reported by the Central Bureau of Statistics (CBS) on Tuesday morning. Prices for consumer goods and services have risen on average due to the price developments of energy and food. In November, CBS reported an inflation rate of 5.2 percent – the highest average price increase in forty years at that time.
Also read: Record inflation is mainly due to energy prices
The increased inflation is mainly due to the increased energy rates for electricity, gas and district heating. On average, electricity was more than 22 percent more expensive compared to the previous year. The rise in energy prices started in the summer and continued in the following months. Last month, according to CBS, energy was almost 75 percent more expensive compared to the year before.
Gas prices rose worldwide due to increased demand due to the economic recovery after the corona crisis and the cold spring. At the same time, less gas was available because Norway could supply less and the Netherlands wants to close the Groningen gas tap in the long term.
Food
In addition to energy rates, consumer prices for food such as meat, vegetables and fruit also rose. In December, foodstuffs were 2.6 percent more expensive compared to the same month a year earlier. In November, the increase was still 1.1 percent. Motor fuel prices also rose this year. However, the price rose in December by more than 27 percent less than in November, when a refueling was on average 33 percent more expensive compared to the previous year.
Last week, figures from the European statistical office Eurostat showed that prices in the eurozone rose by 5 percent in December. Inflation reached an all-time high. Since 2002 – the year the euro was introduced – the average price level for goods and services had not increased as much. In the euro area, inflation has been driven by rising energy tariffs and increased prices for food, tobacco and alcohol.
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