Netherlands purchasing power projected to decline in 2027

New projections from the Netherlands Bureau for Economic Policy Analysis (CPB) indicate that the purchasing power of the median household is expected to decline by 0.3 percent in 2027. While purchasing power is projected to grow by 0.6 percent this year, this is a decrease from previous estimates of 1.4 percent, driven largely by high energy and food costs and inflation remaining around 3 percent.

The decline is attributed to rising costs and government policy changes, including higher deductibles and a new defense tax. Working individuals and benefit recipients are expected to see a 0.4 percent decrease in purchasing power. Couples without children below the retirement age are projected to face the sharpest decline at 0.5 percent.

In contrast, retirees are the only group expected to see an increase, with a projected rise of 0.5 percent. This is due to the transition to a new pension system, which is expected to result in higher pension payouts. CPB Director Pieter Hasekamp noted that generic purchasing power support may not be the most effective policy instrument, suggesting instead that the government focus on home insulation and emergency funds for those unable to pay energy bills.