What is the inflation in the Netherlands in 2022?
In November 2022, the inflation rate was 9.9%, according to CBS (Dutch Statistics). This means that goods and services are 9.9% more expensive than in the same month of 2021.
What happens if inflation falls?
If there is a decrease in the inflation rate, this means that prices are rising less rapidly compared to a month before. Low inflation is good for the economy because it makes people buy products and services faster.
What does inflation say about the economy?
Inflation makes products more expensive. If your income remains the same, you can purchase fewer products and decrease your purchasing power. You can buy more if your income rises and prices remain the same. Purchasing power will then increase.
How does interest help against inflation?
Raising interest rates makes people more inclined to save. Higher interest rates help to combat inflation. As a result, people want to either leave it in a bank account at a higher interest rate or invest it with a high-interest rate.