Dutch Inflation: Developments, Drivers, and the Risk of Wage-Price Spiral: NETHERLANDS

Author: Saioa Armendariz and Ms. Alla Myrvoda

Volume/Issue: Volume 2023 Issue 021

Publication date: March 2023

ISBN: 9798400235320

$15.00

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Topics covered in this book

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Inflation , Labor , Economics- Macroeconomics , Money and Monetary Policy , International - Economics , Inflation , energy , Phillips curve , wages , profits , energy mix , collective bargaining , inflation methodology , energy pass-through , inflation differential , core inflation composition , Wage-Price spiral , inflation development , I , Phillips Curve specification , Energy prices , Consumer prices , Fuel prices , Global

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Summary

Global inflation surged in 2022, driven by high gas price growth. With Russia being a key supplier of energy products, the start of the war in Ukraine has led to strong inflationary pressures in the euro area (EA), given the region’s significant exposure to the Russian gas. The price shock has been particularly strong in the Netherlands, largely due to the larger share of gas on the energy mix compared to other peers, making the country vulnerable to changing market conditions.