AMSTERDAM, Dec 19 (Reuters) – Inflation within the Netherlands is ready to stay at a comparatively excessive degree of round 5% within the subsequent two years as hovering power prices feed into the costs of different items and companies, the Dutch central financial institution (DNB) stated on Monday.
Inflation within the euro zone’s fifth largest financial system is anticipated to drop to 4.9% in 2023, after leaping to 11.5% this yr as Russia’s invasion of Ukraine prompted a worldwide power disaster.
However inflation is prone to stay at 5% in 2024, the central financial institution stated, as surging power payments elevate costs throughout the board and the tight labour market continues to drive up wages.
The European Central Financial institution final week stated it anticipated inflation in the entire euro space to ease to three.4% on common by 2024.
Excessive inflation and a weakening in world commerce will drive financial progress within the Netherlands right down to 0.8% in 2023, earlier than recovering to 1.6% in 2024, DNB stated.
The Dutch financial system is anticipated to develop 4.2% this yr, because of a powerful restoration from its COVID-19 hunch.
Reporting by Bart Meijer, enhancing by Ed Osmond
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