The official inflation rate dropped to 3% in August, according to Dutch statistics office CBS.

This meant that consumer goods and services (CPI) cost 3% more in August 2023 than in August 2022, while prices rose slightly, by 0.4% from July to August this year. When energy and motor fuels are excluded, the inflation rate is 6.4%, year on year.

Although the Netherlands had some of the highest inflation in Europe a year ago, it is now falling below the eurozone average, the CBS said.

On the European measure, the HICP, inflation in the Netherlands has also fallen to 3.4%, roughly the same level as in October 2021, after two years of spiking. This measure takes into account the costs of living in your own home, while the Dutch CPI measure looks at developments in the costs of rental homes.

On Monday, however, the European Commission lowered its growth estimates for the eurozone to 0.8%. The European Central Bank will decide whether or not to increase its interest rate again this week.