Inflation down to 1.4 percent in June

08/07/2004 09:30

According to Statistics Netherlands’ consumer price index, inflation in the Netherlands was 1.4 percent in June 2004, 0.1 of a percent point lower than in May. Lower petrol prices pushed down inflation in June.

Inflation according to the European harmonised method was 0.2 of a percent point lower, at 1.5 percent. This is nearly 1 percent point lower than the estimated average for the euro area.

Prices in June 0.6 percent lower than in May

Consumer prices fell by an average 0.6 percent from May to June 2004. The summer sales started in June, and lower prices for clothes and shoes were one of the mains reason for the lower inflation. Motor fuels were 2.6 percent cheaper than in May, and flowers and plant also cost less. Consumers had to pay more for fish and potatoes on the other hand.

Petrol prices push down inflation

Inflation has been fairly stable in recent months. Changes in the inflation rate were mainly caused by price developments for motor fuels. The decrease in inflation in June, too, was caused by lower motor fuel prices: motor fuels cost 10.6 percent more in June than twelve months previously, in May they cost 14.2 percent more.

Dutch inflation second lowest in euro area

According to the European method of calculation, Dutch inflation fell from 1.7 percent in May to 1.5 percent in June. Eurostat, the statistical office of the EU expects inflation in the euro area to fall by 0.1 of a percent point in June, to 2.4 percent.

One month earlier, in May, Dutch inflation according to the harmonised method was 1.7 percent. This was the second lowest rate of inflation in the euro area. Only in Finland was inflation lower, at -0.1 percent. On average inflation in the euro area was 2.5 percent in May.

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