High on the inflation list are dairy products, such as butter (34.2 percent), milk, yogurt and cheese. Raw milk is needed to produce all these foods, and the price of milk supplied to factories has risen sharply in recent months. The price that farmers receive for milk is more than 60 cents per litre, almost twice as high as a year ago. The supply of milk is also declining: due to drought, among other things, cows throughout Europe give less milk. “Furthermore, animal feed is very expensive,” says ABN Amro researcher Nadia Menkveld. The difference in the price increases between butter, cheese, yoghurt and milk has to do with different preparation methods and the associated costs. In addition, packaging costs also play a role.