The Hague, Jul 31 (IANS): Inflation in the Netherlands rose to 3.7 percent in July, marking the highest level in a year, Statistics Netherlands (CBS) said on Wednesday.

This increase follows a rise to 3.2 percent in June and 2.7 percent in May. The last time inflation exceeded 3.7 percent was one year ago in July 2023, when the data reached 4.6 percent.

The surge in inflation is attributed to the rising prices of food, beverages, and tobacco, which rose by 5.4 percent in July compared to 4.4 percent in June.

Additionally, services prices saw a notable hike of 5.7 percent in July, up from 4.6 percent the previous month, Xinhua news agency reported.

The rise in inflation marks a significant change from last year, when the situation appeared to be under control, with a slight drop in October. However, prices have started to increase faster since then, fluctuating around 3 percent for most of this year.

The higher inflation comes as the Dutch economy stagnates. The Netherlands is about to publish its second-quarter GDP data in mid-August. In the first three months of the year, the Dutch economy shrank by 0.5 percent.