Netherlands prelim July harmonized CPI rises 1.0% m/m

Netherlands prelim July harmonized CPI rises 1.0% m/m

The Netherlands' preliminary July Harmonized Consumer Price Index (CPI) rose by 1.0% month-over-month, according to data released by Statistics Netherlands (CBS) on July 2, 2025. This figure indicates a slight increase from the previous month's reading, suggesting a continued moderate pace of inflation in the country.

The Netherlands' inflation rate for July 2025, as reported in the latest data from Trading Economics, stood at 3.1%, down from 3.3% in June. This decrease is consistent with the broader trend of easing inflationary pressures across the eurozone [2].

The rise in the CPI was driven by various factors, including increases in energy prices and food costs. However, the impact of these volatile components was partially offset by lower prices in other sectors. For instance, the contribution of non-energy industrial goods to the overall inflation rate was positive, adding to the overall index [1].

The European Central Bank (ECB) is closely monitoring these developments. The ECB kept interest rates unchanged at its July 24 meeting, but economists expect one more rate cut this year. The ECB's decision to hold rates steady was influenced by the expectation that inflationary pressures are likely to ease further [1].

The Dutch central bank, De Nederlandsche Bank (DNB), has also been assessing the impact of global factors such as the trade deal between the EU and the US, which is expected to support investor sentiment and the broader economic recovery [1].

In summary, the Netherlands' preliminary July CPI data indicates a modest increase in inflation, driven by various factors. The ECB's approach to monetary policy is likely to be influenced by these developments, with the possibility of further rate cuts in the coming months. Investors and financial professionals should closely monitor these trends for potential implications on economic growth and financial markets.

References:
[1] https://global.morningstar.com/en-gb/economy/eurozone-inflation-what-expect-julys-cpi-data
[2] https://tradingeconomics.com/country-list/inflation-rate?continent=g20