Inflation stable in July

01/09/2005 12:00

Inflation remained stable in July 2005. Just like in June, consumer prices were 1.6 percent higher than twelve months ago.

The annual residential rent increase, effective from 1 July 2005, averaged 2.0 percent,

the lowest increase since 1959. Last year, for instance, residential rents still increased by 3.1 percent. Prices of motor fuels continued to rise in July 2005.

On the other hand, substantial price drops were recorded for fresh vegetables, fruit, flowers and plants. Prices of cloths and shoes dropped due to substantial discounts on summer collection items.

On balance, consumer prices in July were 0.1 percent down on June. This equals the price drop between June and July 2004. Consequently, the inflation rate did not change.

Inflation in the Netherlands is measured as the change of the consumer price index compared with the same period twelve months previously. To allow international comparisons, inflation is calculated according to an European harmonised method as well.

Dutch inflation according to the European harmonised method was 1.5 percent in July, the same as in the previous month. According to Eurostat, the European statistical office, inflation in the eurozone in July was 2.2 percent on average. Dutch inflation is still relatively low. In the eurozone only Finland has a lower inflation, 0.9 percent. Luxembourg accounted for the highest inflation rate, 4.0 percent. Eurostat expects eurozone inflation rate to be 2.1 percent in August.