General view of the Amstel river taken in Amsterdam on April 11, 2023. (PHOTO / AFP)

THE HAGUE — The purchasing power of the Dutch population fell by 1.2 percent year-on-year in 2022 due to high inflation, Statistics Netherlands (CBS) said on Thursday. This was the largest drop in 40 years.

Over the past 10 years, purchasing power in the country has consistently grown, even during the COVID-19 pandemic years (2020-2021). In 2021, purchasing power increased by 1.4 percent.

Retired people suffered the most financially, with an average purchasing power decline of more than 3 percent

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The decline in purchasing power in 2022 was mainly due to high inflation brought about by the sharp increase in energy prices. Incomes rose by an average 5.5 percent, but that was less than the inflation rate of 6.8 percent calculated by the CBS.

Retired people suffered the most financially, with an average purchasing power decline of more than 3 percent, as most of them had too high an income to qualify for an energy allowance.

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Almost all households received a 190-euro ($202) discount on their energy bill in November and December 2022. Without such measures, the drop in purchasing power would have been 2.9 percent, according to the CBS.