Inflation rises to 1.6 percent

07/07/2005 09:30

Dutch consumer prices were 1.6 percent higher in June 2005 than in the same month last year. Inflation is thus 0.3 of a percent point higher than in May, when prices were 1.3 percent higher than twelve months previously. According to Statistics Netherlands’ consumer price index, the increase in inflation in June was caused by higher prices for motor fuels.

Inflation according to the European harmonised method rose by 0.4 of a percent point to 1.5 percent.

Clothes and shoes cheaper in June

Consumer prices fell by an average 0.4 percent from May to June 2005. Most of this decrease is accounted for by the end of season sales of clothes and shoes. Fresh vegetables also cost less. On the other hand, prices of motor fuels rose in June, and potatoes, coffee and fish were all more expensive than one month earlier. 

Inflation up by 0.3 of a percent point

The increase in inflation in June was nearly all caused by higher prices for motor fuels. Last year prices of these products fell by 2.6 percent from May to June, while in the same period this year they rose by 3.9 percent. Prices of petrol, diesel and LPG were more than 9 percent higher than the same time last year.

Dutch inflation still low in international perspective

Dutch inflation calculated according to the European harmonised method (HICP) was 1.5 percent for June. This is 0.4 of a percent point higher than in May. Eurostat, the European statistical office, expects inflation in June to be 2.1 percent on average. In May it was 1.9 percent.

The Netherlands still has one of the lowest rates of inflation in Europe. In the Eurozone inflation was only lower in Finland, while of the non-euro EU countries Sweden and the Czech Republic also had lower inflation.

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