The purchasing power of the Dutch will decrease in 2022 by 1.2% year-on-year due to high inflation, the Dutch statistics office (Centraal Bureau voor de Statistiek – CBS) announced today. This is the biggest drop in 40 years.

In the last decade, the purchasing power of consumers in the Netherlands has been on the rise, even during the Covid-19 pandemic.

In 2021 it had increased by 1.4% on an annual basis.

The decline in purchasing power in 2022 is attributed to high inflation caused by the surge in energy costs.

Pensioners were the hardest hit, with their purchasing power reduced by more than 3%, as most of them did not meet the income criteria to be eligible for energy allowance.

Almost all households in the Netherlands received a subsidy of 190 euros to offset the increase in energy bills in November and December 2022. Without this subsidy, the reduction in purchasing power would have been 2.9% according to Statistics Netherlands service.