On Monday, De Nederlandsche Bank (DNB), the central bank of the Netherlands, warned that stagnating economic growth in the nation means inflation will remain high.

Dutch inflation is expected to decline 4.2% this year, off the peak of 11.6% last year, and then continue to decline to 3.7% next year, and then 2.5% by 2025, according to a report by the bank.

DNB reported that even though inflation declined from double digits, it continued to be too high in the nation, and it blamed the situation on lower economic growth. The regulator predicted that after stagnating this year, the nation will see GDP grow 1.3% next year, and 1.1% in 2025.

The regulator feels that given efforts by the European Central Bank, (ECB) to reduce inflation to 2% across the Eurozone, seeing this trend is worrying.

The regulator explained, “If inflation in the Eurozone falls but remains relatively high in the Netherlands, lowering inflation in the Netherlands will become even more difficult.”

The central bank noted that core inflation, which removes volatile energy and food prices to gain a better feel for inflationary trends, has shown itself to be more stubborn than it was previously projected to be, and it is now higher than headline inflation. Core inflation in the Netherlands is predicted to come in at 6.8%, with it dropping to 3.6% next year and to 2.8% by 2028.

The central bank asked employers and trade unions to restrain any desire to raise wages and prices. The regulator called for companies to control the growth of their profits and wages, “to prevent the economic adjustment process from leading to a leapfrog dynamic that further exacerbates inflation.”