The Netherlands' Central Planning Bureau (CPB, the government's independent economic forecasting agency) has warned that the ongoing Middle East conflict is pushing up energy prices and inflation, erasing an expected 1.4% rise in household purchasing power this year. Depending on how long the conflict lasts, inflation could reach between 3.8% and 5.3%, and purchasing power could fall by up to 1.4% — with lower-income households that rely heavily on cars facing up to €1,000 in additional annual fuel costs. The CPB is advising the government to keep any relief measures targeted and temporary, particularly for vulnerable groups, while cautioning that a lack of European coordination — unlike Germany, the Netherlands is not cutting fuel excise duties — risks countries competing against one another on economic policy.