Wages in the Netherlands rose by an average of 6.6% this year, the biggest rise in 40 years, according to figures from national statistics agency CBS.

The rise is largely due to the high inflation of the last couple of years, CBS economist Peter Hei van Mulligen told broadcaster NOS.

“Purchasing power was plummeting and unions were upping their demands for higher wages. And because of a tight labour market employers were more inclined to give in to those demands,” he said.

People working at housing corporations benefitted most, with a 12.4% pay rise while in the hospitality sector, pay rose by 10.5%.

Service industry wages showed a bigger rise than other sectors, the CBS found. Transport and logistics workers brought up the rear with an average rise of 5%.

In the last two years, wages have caught up with spiralling prices, Van Mulligen said.

Despite the strong labour market, low unemployment and higher wages, consumer confidence has yet to adjust, he said. “A higher wage is nice but soon forgotten and people are confronted by high prices in the shops every day. It takes a while, apparently, for people to realise the difference in pay.”

Van Mulligen said it is difficult to predict if wages will continue to rise next year. “The labour market is still very tight and unions are confident that wages can rise still further. Much will depend on the negotiations,” he said.

Employers’ organisation AWVN said that it had detected a downward trend based on pay agreements made years ahead.

Trade union federation FNV said in September it has made 7% its target increase in the coming round of negotiations.