Inflation rises in December

12/01/2006 15:17

Inflation rose  to 2.0 percent in December 2005. This is 0.2 of a percent point higher than in November. Inflation is measured as the change of the consumer price index compared with the same period twelve months previously.

From November to December 2005, consumer prices fell by an average of  0.5 percent. A decrease like that is usual for this time of year. Despite the decrease on the previous month, inflation rose in December. This is because the decrease measured from November to December 2004 was stronger. For clothing and shoes, the shopping pattern deviated in December 2004, resulting in lower than normal prices in the sales season.   

Consumer prices in the Netherlands were 1.7 percent higher on average in 2005 than in 2004. A large part of inflation in 2005 was caused by price increases of energy products. Higher prices of gas, electricity and motor fuels contributed 1.0 percent point to the 1.7 percent inflation. In 2004 energy products contributed far less: 0.4 of a percent point to 1.2 percent inflation.

Just as in 2004, inflation was low from a historical point of view. The years 2004 and 2005 are the only years since 1990 in which inflation remained below 2.0 percent.