Dutch inflation rate down to 1.6 percent in October

03/11/2005 09:30

The Dutch inflation rate in October 2005 decreased to 1.6 percent. In September consumer prices were 1.8 percent higher than in September 2004, according to the consumer price index by Statistics Netherlands. The main cause is the falling price of petrol. Price rises of fresh fruits and vegetables increased the inflation rate.

The Dutch inflation rate according to the European harmonised method was 1.5 percent. This is 0.2 percent points lower than in September.

Petrol prices falling sharply in October

The price of petrol in October was on average 4.4 percent lower than in September. This cancelled out the sharp price rise between August and September. Petrol is still 9.5 percent more expensive than in 2004. The price of diesel in October was on average the same as in September, while LPG was more expensive.

Food was on average 0.5 percent more expensive in October than in September. This is mainly due to the higher prices of meat, fresh fruit and vegetables.

In October the prices of all consumer expenditure together fell by an average of 0.1 percent on September. In October 2004 there was a slight price increase compared to September. These developments led to a lower inflation rate.

Energy main contributor to inflation

The inflation rate in October returned to the level of June and July, when the inflation rate was also 1.6 percent. Some 1.1 percent point of the inflation rate can be ascribed to energy: gas, electricity and car fuels. The other goods bought by consumers together contributed on balance 0.5 percent point to the inflation rate.

Dutch inflation rate one of the lowest in the Eurozone

The Dutch inflation rate according to the European harmonised method (HICP) reached 1.5 percent in October 2005. This is 0.2 percent point lower than in September. Eurostat, the European statistical bureau, expects a slight drop in the inflation rate in the Eurozone in October, to an average of 2.5 percent. In September the inflation rate in the Eurozone was 2.6 percent. The Netherlands is one of the countries in Europe with the lowest inflation rates. The only country in the Eurozone with a lower inflation rate in September 2005 was Finland.