Inflation up in August

The inflation rate in August 2005 reached 1.8 percent, up 0.2 percent point on June and July. Then prices were 1.6 percent higher than the year before. The increase is mainly due to price developments in petrol, gas, electricity, potatoes, vegetables and flowers.

Energy is the main cause of inflation. In August gas, electricity and car fuels contributed 1.2 percent point. The other articles contributed 0.6 percent point to the inflation rate.

On balance, consumer prices in August rose by 0.4 percent on July. The increase between July and August was larger this year than in 2004. Because of this, the inflation rate in August 2005 rose to 1.8 percent.

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 1.6 percent in August, up 0.1 percent point on July. 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.