Inflation Won’t Let Go—Now the Netherlands May Roll Out Fresh Support as Fuel Prices Bite
The Dutch government is preparing additional support for households next year as inflation stays high and fuel prices rise, reportedly linked to the war in the Middle East. Sources cited by De Telegraaf say details and funding are not decided.
According to the report, the plans are also politically strategic: the government wants enough backing to secure support for the 2027 budget, making household relief part of a broader effort to keep its fiscal agenda viable.
The discussion comes after the Centraal Planbureau (CPB, Netherlands Bureau for Economic Policy Analysis) lowered expectations for purchasing power growth this year. In a negative scenario, the CPB warns purchasing power could even fall.
For next year, the CPB still expects a modest improvement, but Rabobank is more pessimistic. The bank forecasts purchasing power could drop again in 2027 by 0.7 percent.
RaboResearch economist Wouter Remmen told De Telegraaf that wages are likely to rise alongside inflation, helping avoid a steep fall in real wages. Even so, he said households will still feel higher prices because taxes and levies are expected to increase overall costs.
Gasoline prices are expected to be one of the biggest pressure points, and household energy bills could also climb for people signing new contracts. Low-income workers who rely on cars to commute may be hit hardest, with one source cited saying they could spend about 8 percent of their income on the more expensive fuel.
The renewed cost pressures are expected to reignite political debate over cutting fuel excise duties, a move the government previously resisted but may now be forced to reconsider as prices at the pump rise again.