In the Netherlands, the annual consumer price index fell from 3.3% to 3.1%

    by VT Markets
    /
    Nov 11, 2025
    In October, the Consumer Price Index (CPI) in the Netherlands decreased, with the year-on-year rate falling to 3.1%, down from 3.3%. This decline indicates that inflation has slowed over the past year, a trend reflected in national economic data.

    ECB’s Rate Hiking Cycle

    The slight decrease in Dutch inflation is a crucial signal for the broader Eurozone. It suggests that the European Central Bank’s rate hike cycle is behind us. We think that the market is not fully recognizing the possibility of rate cuts in the second half of 2026. Therefore, investing in derivatives that benefit from lower interest rates, like buying Euribor futures for late 2026, seems appealing. This situation is a good sign for European stocks, which have reacted to interest rate changes since the tightening in 2023. With the VSTOXX volatility index currently around 16, which is relatively low, purchasing call options on the Euro Stoxx 50 index is a smart way to take advantage of potential gains if the markets rise due to expectations of easier financial conditions.

    Potential Divergence in Major Economies

    The CPI data may also highlight a divergence with other major economies, especially the United States, where the latest report showed core CPI steady at 3.4%. This difference indicates that the ECB might lower rates before the Federal Reserve. As a result, we should think about trades that expect a weaker Euro, like buying EUR/USD put options, to benefit from this policy gap in the coming weeks. Create your live VT Markets account and start trading now.

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