(Bloomberg) -- European Central Bank Governing Council member Klaas Knot pledged more increases in euro-zone interest rates after inflation in his homeland of the Netherlands jumped to the highest level on record.
Consumer prices in the inflation-averse country surged 17.1% from a year earlier in September, compared with 13.7% in August, a preliminary estimate from the statistics office showed on Friday. Prices rose 2.9% from the previous month.
“I had expected something of an increase, but not this new attack on people’s purchasing power,” Knot, who heads the Dutch central bank and is among the ECB’s top hawks, told Dutch news outlet NOS on Friday evening.
The readings are key to determining whether the ECB will repeat this month’s historic 75 basis-point rate increase when it meets in October. Euro-area inflation hit 10% in September, data showed Friday -- yet another record.
The jump in headline Dutch price growth was led by energy, which accelerated to 113.8% on an annual basis from 88.4% in August.
“Virtually all the goods and services we consume are ultimately produced in part with energy so the products in the shops now have the energy prices of three months ago,” Knot said.
The data are so elevated partly because of how the nation’s statistics agency measures utility costs. Dutch officials calculate energy-price increases by assuming consumers sign a new contract every month, when in reality some households have yearly or longer contracts that shield them from volatility in their bills.
The Dutch statistics agency said it’s looking at a new way of calculating the energy prices and is in contact with the European Union’s Eurostat. The Netherlands publishes final September figures on Oct. 6.
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