Mideast conflict raises inflation in Netherlands

ISTANBUL

The Middle East conflict pushed Netherlands inflation to 2.7% year-on-year in March, Dutch public broadcaster NOS reported, citing preliminary data from the Dutch Central Bureau of Statistics released on Tuesday.

The figure follows a period of easing inflation in recent months.

According to the report, higher oil prices per barrel are affecting fuel prices, pushing up the cost of living.

Prices for other goods and services are also expected to rise in the coming months, including holiday flights and certain food products.

Gas heating costs are also set to increase, particularly for households signing new energy contracts.

Companies have raised prices due to higher costs for raw materials, packaging, and wages, the report said.

A similar rise in living costs was seen in 2022, when gas prices surged amid the war in Ukraine, increasing household energy bills.

Shipping through the Strait of Hormuz, a key route for global trade and energy, has been heavily disrupted since the US and Israel launched attacks on Iran late last month, prompting Tehran to retaliate with strikes on US-linked bases in at least six Gulf nations.

Disruptions to tanker traffic in the strait have already caused global oil supply interruptions and pushed prices higher.