Inflation drops to 1.1 percent in February

Inflation in the Netherlands fell to 1.1 percent in February. This is 0.2 of a percent point down on January, when the inflation was 1.3 percent. Inflation is measured as the change of the consumer price index compared with the same period twelve months previously.

Inflation was tempered by the prices of motor fuels in particular. Prices of petrol and LPG fell in February. The downward effect this had on inflation was intensified because the prices of these products rose substantially in February 2005. In February 2006 motor fuels cost 9.3 percent more on average than twelve months previously, but in January this was 14.0 percent.

Prices of clothes and clothing fabrics, too, had a downward effect on inflation. As usual in February prices increased as the new summer collections arrived in the shops, but the price increase was larger in February last year. As a result clothes and fabrics were 2.5 percent cheaper than twelve months ago.

Inflation also fell as a result of prices of fresh vegetables. These cost 1.1 percent less in February than one year previously. In January they cost 6.3 percent more than twelve months previously.

To allow Euro-zone comparisons, inflation is calculated according to a separate harmonised method as well. According to this method Dutch inflation was 1.4 percent. In January it was 1.8 percent. The inflation in the Euro-zone declined by 0.1 percent point and was estimated at 2.3 percent.